Mpatamanga Hydropower Project hits the Ground

Malawi is moving to strengthen its strained electricity infrastructure with the development of the Mpatamanga Hydropower Project, a large-scale investment expected to add 358 megawatts (MW) to the national grid and ease persistent power shortages.

Chief Secretary to the Government Justin Saidi has expressed satisfaction with progress on the project, describing it as a critical intervention toward the governments target of expanding national generation capacity to 1,000MW by 2030.

Saidi and other officials touring the facility.

Saidi, who also chairs the Electricity Generation Company of Malawi (Egenco) board, made the remarks following a site visit spanning Neno and Blantyre districts, where preliminary works are advancing.

“As a country, we need at least 1,000MW to unlock our development potential,” said Saidi. “We are investing in sectors such as mining, which require substantial and reliable energy for mineral processing. Projects like Mpatamanga are therefore central to achieving that goal.”

Malawis current installed generation capacity stands at 444.67MW, with the bulk—390.15MW—coming from hydropower, alongside 53.22MW from thermal sources and 1.3MW from solar. This limited capacity has struggled to meet rising demand, contributing to frequent outages that continue to constrain industrial activity and service delivery.

The Mpatamanga project is positioned as a cornerstone of efforts to close this supply gap. Once completed, it is expected not only to increase generation but also improve grid stability and support energy-intensive sectors of the economy.

The site of the project.

According to Mpatamanga Hydropower Limited general manager Antoine Gerboud, the development phase is nearing completion, with key milestones already achieved, including the construction of an access bridge linking Blantyre and Neno at the project site.

Gerboud said the construction phase—expected to take approximately 54 months—will involve building both a main dam and a regulating dam, with operations projected to run for up to 30 years.

The project also carries social and economic dimensions. About 45 households earmarked for relocation have already been resettled with newly constructed homes, while the construction phase is expected to generate around 2,500 jobs for Malawians.

Egenco chief executive officer William Liabunya said the project remains on track, with financial closure anticipated to pave the way for the identification of major contractors by the end of 2026.

Financing remains a central pillar of the project. The World Bank approved a $350 million grant last year, underscoring the scale and strategic importance of the investment to Malawis energy security ambitions.

The project is being implemented under a public-private partnership model, with Egenco holding a 30 percent stake on behalf of the government. Mpatamanga Hydropower Limited, established in 2022, is leading the development, financing, construction, and eventual operation of the plant.

Its current shareholders include SN Malawi BV—backed by Scatec ASA, British International Investment, and Norfund—and EDF International, each holding 50 percent. The planned ownership structure will see Egenco retain 30 percent, while EDF and Scatec with its partners will each hold 27.5 percent, and the International Finance Corporation will take up 15 percent.

While the project signals a significant step toward expanding generation capacity, its long-term impact will depend on timely execution, financial sustainability, and integration with Malawis broader transmission and distribution network.