Energy for growth and jobs
W
hen the European Union (EU) and Malawi put their energy into joint projects, great things happen. This is the case of the Mozambique-Malawi 400 kV Interconnector that brings us together today.
A thriving Malawi means moving from a landlocked to a land-linked country, a concept that the Government of Malawi has firmly anchored in its new energy policy.
What will the interconnector bring to the Malawian population? It will link up Malawi’s energy grid to the regional electricity market of the Southern African Power Pool (SAPP). This will facilitate the trading and balancing of electricity among countries within the region. It is a major first step in increasing Malawi’s energy capacity, moving from being an observer to an operating member of the SAPP.
Energy is one of the main drivers of inclusive and sustainable growth and jobs. Lack of access to reliable power is currently preventing Malawi from realising its full economic growth and development. Businesses and people are affected by regular power cuts and the high costs for diesel generators. The interconnector project will provide Malawi’s private business sector with a more secure supply. This will in turn create an environment where business development can accelerate. Growth in the agriculture sector will benefit from new value chains that depend on a secure and affordable source of energy. A secure energy supply will further lead to improved productivity as businesses will be in a position to operate uninterrupted while optimising their investments.
The energy infrastructure needs are substantial, and despite our best efforts as a partner to Malawi, can only be satisfied if Malawi can attract private investment to the power sector, particularly in renewable energy. This is also the purpose of the Africa-Europe Alliance and the European External Investment Plan. Renewable energy is the future and we welcome the Malawi Government’s initiative to procure 70 MW of solar energy. After two years of negotiations, it is now time to fast-track the process and realise the benefits of these investments.
Our EU companies are ahead on the market. The EU recently organised a meeting with its private sector in Blantyre. During the meeting, they discussed associated bottlenecks including energy that need to be tackled in order to attract investments in other sectors of the economy.
The EU strongly supports regional integration initiatives such as the SAPP and we take pride in contributing to the Mozambique-Malawi Interconnector, in partnership with KfW (the German development bank Kreditanstalt für Wiederaufbau). This initiative comes alongside the EU’s support to other regional infrastructure initiatives to boost regional trade and economic growth: The North-South M1 corridor in partnership with the European Investment Bank and the Nacala Road Corridor in partnership with the African Development Bank.
It is critical to continue our joint efforts to strengthen Malawi’s regional connectivity and infrastructure in view of supporting inclusive growth and development for all Malawians.
