Minister of Energy Jean Mathanga yesterday told Parliament that government is racing to stabilise Malawi’s worsening electricity and fuel situation through a mix of short-term measures and long-term infrastructure projects.
Her 23-minute ministerial statement came as the country continues to endure intermittent power supply and scheduled load-shedding that have disrupted industries, hospitals, and households nationwide.
The minister said the electricity supply crisis has been exacerbated by low generation capacity, ageing infrastructure, and maintenance delays linked to foreign exchange shortages.
She said available capacity has fallen to about 341.8 megawatts (MW) against a system demand of 420MW, despite an installed capacity of 551MW.
Said Mathanga: “Tedzani III Unit 5, which contributes 31 megawatts, has been out of service since December 2024 due to a burnt stator winding, and a shortage of foreign exchange delayed procurement of critical spare parts.”
The minister said diesel shortages have further constrained operations at diesel-powered plants and slowed essential maintenance works.
To ease the crisis, Mathanga said government has launched a series of emergency actions expected to restore stability by early 2026.
These include restoring Tedzani III by December, adding 10MW from the Salima Solar Plant by year-end, and completing the Mozambique–Malawi power interconnector in the first quarter of 2026 to facilitate the importation of up to 50MW.
Other measures include commissioning a 10MW biomass plant this month and installing a 20MW battery storage system by March 2026 to enhance grid stability and reliability.
Mathanga said in the long term, government will roll out flagship projects such as the 358.5MW Mpatamanga Hydropower Project, expected to begin in 2026, expansion of the Salima–Nanjoka Solar Plant to 50 MW, and development of the 300 MW Kammwamba coal-fired power plant.
“These projects will provide lasting energy security, reduce load-shedding, and lay a strong foundation for industrial growth,” she said.
The minister admitted that Malawi currently has no strategic fuel reserves, describing the situation as “hand-to-mouth.”
She said stock cover in October did not exceed three days, leaving the economy vulnerable to shipment delays.
Mathanga said government is negotiating a $120 million to $150 million fuel import credit facility and has engaged the Reserve Bank of Malawi and the Ministry of Finance to increase foreign exchange allocations for fuel imports. Ninety-two fuel tankers are expected to arrive in the country this week.
She added that Malawi will revert to the open tender procurement system to enhance transparency, with security forces deployed to curb hoarding and smuggling.
Leader of Opposition Simplex Chithyola-Banda welcomed the update, but questioned why government had not acted sooner on the fuel storage land already granted by Mozambique.
He also cautioned that reinstating automatic fuel pricing could fuel inflation and hurt consumers, further urging the ministry to explore carbon trading mechanisms to offset the cost of renewable power generation.
In an earlier interview, Economics Association of Malawi president Bertha Bangara-Chikadza shared similar concerns, observing that while automatic pricing could trigger inflation, it could also reduce fiscal pressure in the long run.
The International Monetary Fund (IMF) has also previously called for similar reforms, noting that delayed price adjustments have depleted the Price Stabilisation Fund and left importers owed over K950 billion.
Mathanga said government “will not run away from responsibility” and pledged to restore normal fuel supply “swiftly.”
“Our priority is to stabilise the energy sector and power Malawi’s path to industrialisation and prosperity,” she said.
