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Forex, policy gaps stall clean energy drive

Malawi risks missing on its target to increase electricity access to 75 percent by 2030 due to persistent scarcity of foreign exchange coupled with policy gaps, it has emerged.

Stakeholders expressed the concerns during the International Day of Clean Energy commemoration in Lilongwe yesterday organised by Malawi Energy Regulatory Authority (Mera) under the theme ‘Powering progress, clean energy solutions development’.

Foreign currency is also used in the illicit deals. | Reuters

In his submission, Renewable Energy Industries Association of Malawi (Reiama) secretary general Beston Gama said with current electricity access at 25.9 percent, achieving the 2030 target requires urgent policy reforms.

“One challenge is that current policy only allows investors to install mini-grids at least 10 kilometres from the main grid. This discourages investment, as viable projects are often closer to the grid,” he said.

Gama said that foreign exchange shortages are slowing down the importation of renewable energy technologies, including solar power equipment, affecting both investors and independent power producers.

Civil Society Network on Climate Change national coordinator Julius Ng’oma noted that access and affordability remain major hurdles, particularly in rural areas.

He said: “We are still heavily reliant on hydroelectricity, which reaches only 25 percent of households, while 45 percent of people rely on biomass fuel. Clean cooking alternatives reach just three percent of the population.”

On his part, Mera acting chief executive officer Dad Chinthambi said Malawi is in transition from fossil fuel to clean energy and the current regulations are aligned to support that transition through the Renewable Energy Act which his institution is embarking.

He said: “We want to reduce our carbon footprint, we want to make sure that we contribute to net zero.”

Ministry of Energy and Mining chief energy officer Gift Chiwayula acknowledged the challenges, confirming that foreign exchange shortages are delaying energy projects.

The 2026 International Day of Clean Energy event was meant to promote clean energy technologies, enhance energy security, and help mitigate climate change impacts.

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