Ministry of Energy has asked the Reserve Bank of Malawi (RBM) and the Ministry of Finance, Economic Planning and Decentralisation to give strategic energy projects a priority in foreign exchange allocations.
The request follows delayed rollout of the Malawi Rural Electrification Programme (Marep) Phase 9 due to forex shortages.
The ministry says critical electrical equipment procured for the project is stranded in overseas markets, mainly China, because government agencies and private contractors are struggling to access foreign currency to settle payments.
Ministry of Energy chief economist Chris Chidzonga disclosed this in Lilongwe on Wednesday during a multi-stakeholder coordination meeting organised by the Civil Society Network on Climate Change (Cisonecc) under the Promoting Energy Access through Clean Energy Project.
“A good example is Marep Phase 9. It has taken a long time because of issues to do with shortage of forex, among other things, because most of the materials are imported from China and other countries,” he said.
Chidzonga said the ministry engaged senior government officials to secure preferential foreign exchange treatment for energy infrastructure.
Marep Phase 9 already suffered repeated delays. Initially scheduled for completion in March 2024, the deadline was moved to August and later December of the same year.
It is estimated cost also rose from K40 billion in 2022 to more than K70 billion, largely due to kwacha devaluations, higher import costs, among others.
Cisonecc national coordinator Julius Ng’oma called for stronger collaboration among government, civil society, development partners and the private sector, saying universal clean energy access would require coordinated action across sectors.
He said the forum provided an opportunity to assess progress on energy reforms and consolidate strategies for expanding access.
