Malawi, one of the poorest countries in the world, has secured a $350 million grant from the World Bank to support the development of a landmark hydropower project set to transform its energy sector and attract the largest foreign direct investment in its history.
The Washington-based lender announced late Thursday that its board had approved funding for the Mpatamanga Hydropower Storage Project (MHSP), a public-private partnership expected to cost over $1.5 billion. The 358-megawatt facility will double the southern African country’s hydropower capacity, delivering 1,544 gigawatt-hours of clean electricity annually.
“This new hydropower project is a game-changer for Malawi, capable of catalysing transformative change in productive economic sectors such as mining, agri-business and tourism,” said Nathan Belete, World Bank Country Director for Malawi, Tanzania, Zambia and Zimbabwe.
The Mpatamanga project, located along the Shire River, will feature two dams to generate and store power, helping to stabilise the national grid during peak demand periods.
The project is expected to supply electricity to over 1 million new households and create thousands of jobs, both directly and through downstream industries, the World Bank added.
“MHSP is a top priority for our government as the least-cost option in meeting our growing energy demand and achieving our access targets,” said Malawi’s Minister of Energy, Ibrahim Matola. “Once operational, this project will help drive long-term energy security and support lasting, inclusive economic growth.”
The Malawian government selected a consortium in 2022 comprising Electricité de France (EDF) and SN Malawi BV—backed by British International Investment, Norfund and TotalEnergies—to lead the project’s development.
The deal marks a milestone for private investment in Malawi, a country long plagued by chronic power shortages.
According to the World Bank, the financing structure includes grants, equity, loans, and guarantees from multilateral institutions and private investors.
The lender also said the project will improve energy reliability for key sectors, particularly mining, which is vital to the country’s long-term economic prospects.
The Mpatamanga project adds to the World Bank’s broader energy portfolio in Malawi, which includes efforts to restore the Kapichira power station and expand regional interconnectors to Mozambique.
