Malawi’s energy transition: PPPs & regional collaboration for growth

Malawi, a country in southeastern Africa, is on a mission to harness public-private partnerships and regional collaboration to drive sustainable growth in its energy sector. CNBC Africa recently had the opportunity to speak with Malawi's Minister of Energy, Ibrahim Matola, who shed light on the nation's efforts to build a resilient and inclusive energy industry that aligns with Africa's broader transition goals. Minister Matola highlighted the significant gap between Malawi's current energy generation capacity and the growing demand for energy in the country. He emphasized the need for substantial investments in energy generation to meet the population's energy needs and drive economic growth. Encouraging investors to explore opportunities in Malawi, Minister Matola underscored the pivotal role of energy as a driver of the economy and an enabler for various sectors. In pursuit of modernizing its energy infrastructure, Malawi has been taking steps to transition from outdated systems to new, efficient infrastructure. The country's focus on energy security has prompted strategic initiatives to address challenges such as insufficient investment in generation. Minister Matola emphasized the importance of consistently adding capacity to the national grid and implementing off-grid solutions to reach underserved areas. One such initiative, the Malawi Rural Electrification Programme (MAREP), targets trading centers, schools, and health facilities to enhance access to electricity. However, Minister Matola stressed the urgency of accelerating progress to achieve the nation's energy goals by 2030. Malawi faces the predicament of operating ageing generating machines, some of which date back to 1966. The costly maintenance and limited compatibility with modern technology present significant hurdles in upgrading the energy infrastructure. Minister Matola highlighted the need for new machines that align with current technology standards and emphasized the importance of underground transmission lines to enhance resilience against natural disasters. The prevalence of extreme weather conditions in Africa necessitates innovative solutions like underground cables to mitigate the risks of system damage. Looking ahead, Malawi is exploring alternative energy sources to diversify its energy mix and ensure long-term sustainability. Geothermal energy emerges as a promising option, with over 61 potential sites identified in the northern region of Malawi. The collaboration with Kenya on geothermal projects showcases the regional partnership in leveraging natural resources for energy generation. Minister Matola commended the dual benefits of geothermal energy, which not only provides a reliable and affordable power source but also promotes tourism through spa facilities. Additionally, Malawi possesses significant gas reserves, hinting at the potential for future investments and industrial expansion. The focus on new technologies and strategic investments in energy infrastructure aligns with Malawi's vision for a prosperous and resilient energy sector that contributes to job creation and economic development. By tapping into its abundant natural resources and fostering collaboration with neighboring countries, Malawi positions itself as a key player in Africa's energy transition journey towards sustainable growth and regional integration.