Salima, MALAWI – Malawi’s energy sector is facing growing pressure as foreign exchange shortages make it difficult for utilities and energy companies to import essential equipment, spare parts and other inputs required to maintain and expand electricity infrastructure.
Minister of Energy Jean Mathanga said the forex crisis is worsening challenges in the energy sector, forcing Malawians to endure frequent and, in some cases, prolonged electricity interruptions.
Mathanga was speaking on Wednesday during the Fifth Malawi National Energy Conference in Salima, where government representatives, development partners and energy sector stakeholders discussed ways of addressing the country’s energy challenges.
According to Mathanga, forex shortages are affecting the ability of utilities and energy companies to meet their foreign currency obligations while also limiting access to critical inputs needed to keep the sector operating.
“Our people continue to experience frequent and, in some cases, prolonged electricity interruptions,” Mathanga said.
She added that Malawi’s electricity generation, transmission and distribution infrastructure requires significant investment and regular maintenance, but the country’s foreign exchange constraints are making it difficult to meet these needs.
The minister said the forex crisis is also affecting fuel supplies, further compounding pressure on the energy sector.
Mathanga said government is pursuing measures to expand access to electricity despite the challenges.
She pointed to the $100 million Malawi Electricity Access Project among initiatives aimed at improving access to electricity.
In his words, European Union Head of Cooperation George Dura said Malawi needs to explore innovative financing models capable of attracting investment into the energy sector despite limitations in public resources.
Dura, however, cautioned that financing alone would not resolve the challenges facing the sector.
“Innovative financing alone cannot solve this challenge either. What matters equally, and perhaps even more, is creating the conditions that make projects bankable,” he said.
Former Electricity Supply Corporation of Malawi (ESCOM) chief executive officer Kandi Padambo said Malawi needs increased investment to expand its electricity generation capacity.
He said the country already has insufficient capacity to generate electricity and called for measures to increase and revive generation capacity.
Padambo also proposed the construction of a fuel pipeline and greater use of railway transport to reduce fuel transportation costs and ease pressure on foreign exchange.
The energy sector has been facing pressure from rising demand, inadequate generation capacity and challenges in securing investment for infrastructure.
The latest concerns come as Malawi also grapples with fuel supply difficulties linked to foreign exchange constraints.