Increased power connectivity amongst Malawians gets Word Bank Group’s blessings

World Bank’s Practice Manager, Yadviga Semikolenova 

* Before 2023, ESCOM was able to connect only 35,000 people a year to the national grid, which was not fast enough 

* This was the best the utility provider could do but given how fast the population has grown it didn’t give a dent 

* We are impressed that in 2023 alone, connections to the grid grew from 35,000 to over 75,000, which is no mean achievements

By Mike van Kamande in Washington DC 

The World Bank Group says Malawi has demonstrated seriousness in enhancing provision of electricity to many people by managing to double its yearly electricity connections within the last two years.

Speaking on Friday during a meeting between the World Bank Group and Malawi delegation at the IMF/World Bank Group 2024 Spring meetings, the global bank’s Practice Manager, Yadviga Semikolenova said they were impressed with progress made in providing clean energy access in Malawi.

“Before 2023, Electricity Supply Corporation of Malawi (ESCOM) was able to connect only 35,000 people a year to the national grid, which was not fast enough. 

“This was the best the utility provider could do but given how fast the population has grown it didn’t give a dent. The World Bank Group worked very closely with government and the utility company to make sure it has capacity and all equipment necessary for scaling up. 

“We are impressed that in 2023 alone, connections to the grid grew from 35,000 to over 75,000, which is no mean achievement,” she said, adding that the Malawi government also understands that with the increasing population, off grid energy can be generated with current technology by harnessing solar with almost the same quality as the grid energy. 

 “Government put together the ‘Result-Based Facility’, which the private sector could benefit which provides subsidies to them to enhance confidence in the investors. Malawi is now the fastest growing off grid energy market in east Africa,” she said.

Minister of Finance & Economic Affairs, Simplex Chithyola-Banda said before World Bank Group intervened in the energy sector, ESCOM faced capacity challenges which prompted government to engage the Bank to assist with contract management skills which was lacking. 

“The question of resources is connected to the question of planning because we need to figure out the cheapest way to providing access,” he said. “Government is bringing in a lot of private sector in the energy sector a good example being that of Mpatamanga Hydropower Project,  which the Multilateral Investment Guarantee Agency (MIGA) is providing guarantee for US$50million for its completion,” he said.

Chithyola-Banda added that the government is also facilitating the Southern Africa Power Pool through Mozambique and Zimbabwe but if to connect to Zambia-Mpatamanga Hydropower Project, it will be producing a lot.

A few days ago, through MIGA — which is a development arm of the World Bank Group that offers guarantees — the Bank committed itself in helping Malawi with resources for the Mpatamanga Hydropower project.

Speaking after a meeting between MIGA officials on the sidelines of the 2024 IMF/World Bank Group Spring meetings, MIGA vice-president, Ethiopis Tafara told Malawi News Agency (MANA) that his institution is ready to bring private capital investors to the priority projects lined up by Malawi in agriculture, tourism and mining, popularly called the ATM strategy.

“The World Bank is impressed with the efforts being done by the Government of Malawi mainly looking at the potential the ATM strategy has to enhance the country’s economy,” he said, while Secretary to the Treasury, Betchani Tchereni expressed gratitude that development partners have started showing interest to invest in the ATM strategy — starting with World Bank itself. 

“The Mpatamanga Power Project, which has stalled for long due to financial challenges, is one of the many projects the government of Malawi hopes to increase the country’s power generation capacity to meet the ever increasing energy demands.”

Tchereni said for Malawi to achieve private sector led growth, there is need for private investors to come on board and hold hands with government just like the World Bank has done. 

Soon after the devastation at Kapichira Hydro Power Station’s dam that was caused by Cyclone Ana in 2022 — that lost 130 megawatts of power off the grid — the World Bank swiftly moved in to assist in its restoration process that was completed towards end of 2023.

Meanwhile, Finance Minister Chithyola-Banda took advantage of his assignment in the US to interact with Malawians resident there urging them to be patriotic by selling the ATM strategy to enhance Malawi economic recovery and growth. 

At a reception on Wednesday, Chithyola-Banda said the ATM needs massive marketing outside Malawi especially in the US: “Government would like to appeal to officials in our foreign missions to seriously invest time marketing their country’s investment opportunities especially the ATM to potential investors. 

“The ATM has the ability to transform our economy within a short period of time but we need to market it aggressively,” he said, while emphasising that the Ministry of Finance is determined to enhance economic development through promotion of direct foreign investment which Malawians in diaspora can help with. 

Malawi Ambassador to the USA, Esme Chombo said Malawians living in the US should engage an extra gear in promoting investment to Malawi.—Editing by Maravi Express