The World Bank has approved a $350 million grant to support Malawi’s ambitious Mpatamanga Hydropower Storage Project (MHSP), a transformative energy initiative designed to significantly boost the country’s electricity generation and economic development.

The funding, provided through the International Development Association (IDA), will help finance the construction of a 358.5-megawatt hydropower facility on the Shire River. Once completed and pending additional private sector investment, the project is expected to produce 1,544 gigawatt-hours of renewable energy annually, enough to connect over one million households to the national grid and create thousands of jobs.

Describing the project as a national priority, Malawi’s Minister of Energy, Ibrahim Matola, emphasized its strategic importance: “MHSP is a top priority for our government as the least-cost option to meet our growing energy demand and achieve our access targets,” he said. “Once operational, this project will help drive long-term energy security and support lasting, inclusive economic growth.”

The Mpatamanga project is being developed as a Public-Private Partnership (PPP) between the Government of Malawi and the International Finance Corporation, part of the World Bank Group. With a total estimated cost exceeding $1.5 billion, the initiative represents the largest foreign direct investment in Malawi’s history. In 2022, a consortium led by Electricité de France (EDF) and SN Malawi BV backed by British International Investment, Norfund, and TotalEnergies, was selected as the project’s strategic sponsor through a competitive international bidding process.

The hydropower facility will include both a main and a regulating dam, enabling energy storage and supply during peak demand periods. This is expected to enhance the reliability of Malawi’s power grid and support energy-intensive sectors such as mining, which is poised to play a key role in the country’s economic future.

Nathan Belete, World Bank Country Director for Malawi, Tanzania, Zambia, and Zimbabwe, highlighted the broader impact of the project: “This new hydropower project is a game-changer for Malawi, capable of catalyzing transformative change in productive economic sectors such as mining, agri-business, and tourism,” he said. “This new source of clean and reliable energy will help drive business growth, create jobs, and improve the lives of millions of Malawians.”

The Mpatamanga project is part of a broader portfolio of energy investments in Malawi supported by the World Bank Group. Other key initiatives include the Emergency Power Restoration Project, the Mozambique–Malawi Regional Interconnector, and the ASCENT project, which aims to expand electricity access to underserved communities.