World Bank Approves $350M Grant for Malawi Mpatamanga Hydropower

The World Bank's board of directors has approved a $350 million grant to support Malawi's Mpatamanga Hydropower Storage Project (MHSP), a transformative initiative expected to significantly boost the country's electricity generation capacity by adding 358 megawatts, effectively doubling Malawi's installed hydropower capacity. The project, which represents the largest foreign direct investment in Malawi's history with a total cost exceeding $1.5 billion, is a public-private partnership co-developed by the Government of Malawi and the International Finance Corporation, with strategic sponsors Electricité de France and SN Malawi BV. Once completed and subject to full private financing, MHSP will generate 1,544 gigawatt-hours of clean, renewable energy annually, providing power to over one million households and creating thousands of jobs. The hydropower facility includes two dams on the Shire River with energy storage capabilities to improve grid reliability and support energy-intensive sectors such as mining, agriculture, and tourism. The project is part of a broader World Bank-supported energy agenda in Malawi aimed at increasing energy access and fostering long-term inclusive economic growth. Malawi's Minister of Energy, Ibrahim Matola, emphasized that the project is a least-cost option to meet growing energy demand and a key driver for poverty reduction and attracting private investment.