The European Union (EU) has announced a 500 million euro (about K929 billion) energy package for Malawi to finance Mpatamanga hydro-power plant and Malawi-Mozambique Interconnector, among key electricity projects.
The announcement in Lilongwe yesterday comes months after the EU and Malawi Government held discussions on the potential investments in the sector during the Malawi–EU First Investment Forum in November 2024.
The news also comes weeks after the EU confirmed during the at the M300 Africa Energy Summit in Tanzania a fortinight ago, a comprehensive plan to support the strengthening of Malawi’s energy sector in the years to come. The package targets generation, transmission and distribution of energy.
Speaking when he unveiled the package during a media briefing in Lilongwe, EU Ambassador Rune Skinnebach said it is aligned with the EU Global Gateway strategy, and aims to boost inclusive and sustainable economic growth for jobs creation.
He said: “The total investment framework will consist of a mix of concessional loans, investment grants and guarantees, with current and planned energy investments.
“The package is the result of a Team Europe approach, which sees the collective effort of European Commission, European Investment Bank as well as other European development banks, EU member States and their development agencies and EU private sector, making the EU one of the biggest contributors to Malawi energy sector.”
The EU package comprises both future strategic hard infrastructure investments with development financial institutions, mostly the European Investment Bank, in key energy generation, transmission, distribution and rehabilitation of infrastructure focusing on the promotion of innovative renewable energy solutions.
In an interview on the sidelines of the launch, Minister of Energy Ibrahim Matola described the EU energy package as a milestone that will enable the country attain its electricity access aspirations while enabling its exportation to regional markets through the Southern Africa Power Pool (Sapp).
He said: “Key energy investment projects include the Global Gateway flagship project Eastern Backbone Transmission Line programme, the Mpatamanga Hydro-power Plant and the Malawi Mozambique Interconnector which will connect Malawi to Sapp offering opportunities to export green energy and strengthen its economic position in the region.”
In his remarks, EU directorate general for international partnerships Head of Unit responsible for Climate Change and Sustainable Energy Stefano Signore described energy as the crucial area of corporation between Malawi and EU; hence, the institution targets all areas of generation, transmission and distribution.
Malawi Government targeted to increase power generation to 1 000 megawatts (MW) by 2025. However, it currently has installed capacity of 441.9MW with 390.55 from hydro sources.
The Mpatamanga project is projected to generate 361MW.
