The Malawi-Mozambique Power Interconnection Project has received a grant approval of $2.25 million to update its feasibility and environmental and social impact assessment studies.
David Hendrickson, Senior Communications Officer at the Multilateral Cooperation Centre for Development Finance (MCDF), said on Monday the grant was approved by the organisation’s Governing Council.
Hendrickson stated that the grant will fund technical feasibility studies for a planned cross-border power project.
The project involves a 400kV transmission line from the Iganjo Substation in Mbeya, Tanzania to the Nkhoma Substation in Lilongwe, Malawi.
“The MCDF grant will fund technical feasibility studies, an environmental and social impact assessment, and resettlement action plans that are prerequisites for IFI financing, helping to make the Tanzania-Malawi 400kV power transmission project a reality, based on International Financial Institution (IFI) environmental and social standards, ” Hendrickson said.
In addition, the Electricity Supply Corporation of Malawi (ESCOM) said the development comes at a crucial time.
The 50MW Malawi–Mozambique Power Interconnector Project is nearly ready for commissioning before the end of this year.
ESCOM added that the grant approval marks a significant step in its efforts to stabilize power supply and end blackouts in Malawi.
ESCOM Chief Executive, Kamkwamba Kumwenda said the funding will allow the utility to assess the viability and potential benefits of the project.
“We had already started preparatory works for the project. Among others, we already have Nkhoma Substation which will serve as the landing point for the interconnector line in the centre.
“We are on the right track to achieving our vision of becoming a supplier of reliable, inclusive, and affordable electricity in Malawi and in the region,” Kumwenda said.
The studies are expected to take 12 months, starting from February 2026. They will update the work ESCOM carried out in 2008 on the Nkhoma–Kasungu–Mzimba–Bwengu–Karonga transmission line.
They will also build on studies conducted by Tanzania Electric Supply Company Limited on the Tanzanian side in 2022.
The project, which will be supervised by the African Development Bank (AfDB) will feature a 400 kilovolt (kV) transmission line that will include a 82.3km long Mbeya-Kyela segment in Tanzania and an estimated 55km segment stretching from Karonga in Malawi to Kasumulu in Tanzania.
The project’s 400kV transmission backbone (Western Backbone) will link underserved northern and central regions of Malawi.
It will further interconnect the country’s power system with the Southern African Power Pool via Mozambique and Zambia, and the East African Power Pool through Tanzania.
The World Bank, the German development bank, KfW and the European Investment Bank are funding the project with a combined amount of $154 million.
The project joins two other World Bank- funded energy projects in Malawi – the Mpatamanga Hydropower Storage Project (MHSP) and the Accelerating Sustainable and Clean Energy Access Transformation (ASCENT) Malawi Deal.
Malawi’s electricity demand is projected at about 800MW.
However, the country is facing intermittent power supply following damage to the Kapichira Hydropower Station by Tropical Cyclone Ana, which knocked off 129MW from the power grid.
