The African Development Fund’s Board of Directors has approved a $22.9 million grant for the rehabilitation of Malawi’s Kapichira and Nkula B hydropower plants, representing a transformative investment in the country’s energy sector. The broader $118.7 million initiative, with co-financing opportunities, will upgrade two critical power generation facilities: Kapichira I (64 MW), serving the southern region, and Nkula B (100 MW), Malawi’s oldest major hydropower station built in 1966. These plants currently supply about half of the nation’s electricity but operate significantly below capacity due to ageing infrastructure and recent cyclone damage. Macmillan Anyanwu, African Development Bank’s country manager for Malawi, highlighted that restoring these facilities will not only fix infrastructure but also unlock economic potential, create jobs, and deliver reliable electricity to communities affected by chronic power shortages.
The rehabilitation is expected to increase annual energy generation by 55%, from 916 GWh to 1,426 GWh, and extend the operational life of the facilities from 22 to 47 years. Plant performance is projected to improve from 80% to 95%, effectively eliminating forced outages that have long affected Malawi’s electricity supply. The country faces severe energy poverty, with only 25.9% of the population having access to electricity, one of the lowest rates in Africa. The situation worsened after Tropical Storm Ana in 2022 severely damaged the Kapichira plant, which accounts for nearly 30% of the nation’s generating capacity.
The project aligns with Malawi’s Vision 2063 and the Malawi Energy Compact signed in January 2025 under the Mission 300 initiative, which seeks to provide electricity access to 300 million Africans by 2030. Improved and reliable electricity will support the expansion of agriculture, mining, and manufacturing, reduce costs associated with diesel generators, enhance healthcare and education delivery, and advance urbanization and regional integration through the Southern Africa Power Pool. Climate resilience is also a key focus, ensuring sustainable and reliable energy supply for the future.
The Government-owned Electricity Generation Company will execute the project, with implementation planned from March 2026 to December 2030. The rehabilitation positions Malawi to leverage regional energy opportunities, including connection to the Southern Africa Power Pool via the Mozambique-Malawi interconnector, potential integration with the East Africa Power Pool through the proposed Malawi-Tanzania interconnector, and synergies with planned transmission upgrades. The project also enhances Malawi’s capacity to integrate additional generation from the upcoming 358 MW Mpatamanga hydropower plant, strengthening the country’s energy security and regional power influence.
