The World Bank has approved a $350 million grant to support the development of Malawi’s 358.5 MW Mpatamanga Hydropower Storage Project (MHSP), a transformative initiative expected to generate 1,544 GWh of clean energy annually—enough to power over one million households.
“MHSP is a top priority for our government as the least-cost option to meet our growing energy demand and achieve our access targets,” said Ibrahim Matola, Malawi’s Minister of Energy.
With a total estimated cost of $1.5 billion, the project is being developed in collaboration with international development partners, including the International Finance Corporation (IFC), Électricité de France (EDF), British International Investment, Norfund, and TotalEnergies.
The project will be financed through a mix of grants, equity investments, loans, and guarantees provided by various development institutions and private sector stakeholders.
Once completed, MHSP is expected to become the largest foreign direct investment in Malawi’s history, marking a major milestone in the country’s energy and economic development agenda.
