By Burnett Munthali
Malawi’s ambition to industrialize and transition into a middle-income economy remains hamstrung by a persistent and worsening energy crisis.
Erratic electricity supply, frequent blackouts, and chronic underinvestment in the energy sector continue to cripple key industries, stifle investment, and undermine job creation.
Manufacturing, one of the pillars of Malawi’s industrialization agenda under the Malawi 2063 Vision, has been the hardest hit by the unreliable power supply.
According to the Malawi Confederation of Chambers of Commerce and Industry (MCCCI), 60% of local manufacturing firms report losing several production hours per day due to power outages.
These disruptions lead to reduced output, increased production costs, and in some cases, the closure or relocation of businesses to neighboring countries with better energy reliability.
In the mining sector, which is poised to be a key revenue generator for the country, energy limitations have slowed down both exploration and mineral processing activities.
Malawi is rich in resources like rare earth elements, uranium, and bauxite, yet the sector remains underdeveloped largely due to the lack of stable and sufficient electricity.
The Electricity Supply Corporation of Malawi (ESCOM) and the Electricity Generation Company (EGENCO) continue to struggle with aging infrastructure and inadequate generation capacity.
As of 2024, Malawi’s total installed electricity generation capacity stood at approximately 563 megawatts (MW), of which around 93% is hydroelectric and highly vulnerable to climate-related shocks like droughts and floods.
In contrast, demand is projected to exceed 1,000 MW by 2030, indicating a serious supply-demand gap that needs urgent attention.
The World Bank’s 2023 report on Malawi’s energy sector highlighted that only 14% of the population has access to electricity, with rural electrification rates below 5%.
This limits not only industrial expansion but also opportunities for rural agro-processing, small-scale enterprises, and digital connectivity.
Investors, both local and foreign, frequently cite power instability as a top deterrent to doing business in Malawi, which affects foreign direct investment inflows and the development of special economic zones.
Efforts such as the Malawi Electricity Access Project (MEAP), supported by the World Bank and the African Development Bank, aim to expand grid access and improve energy infrastructure, but progress has been slow due to financial constraints and bureaucratic delays.
Meanwhile, Malawi has untapped potential in renewable energy, particularly in solar and wind, but the scaling up of such initiatives remains minimal and scattered.
The government’s 2021 Renewable Energy Strategy aims to add 1,000 MW of renewable energy by 2030, yet implementation remains patchy and lacks the needed urgency.
To industrialize successfully, Malawi must treat energy as a foundational sector—not merely a utility, but a driver of productivity, competitiveness, and inclusive development.
Comprehensive reforms are needed to modernize the power grid, attract private-sector participation, diversify the energy mix, and improve governance within ESCOM and EGENCO.
Energy subsidies must also be rationalized to ensure they support investment in sustainable power rather than fuel inefficiency and losses.
Without reliable electricity, even the most well-crafted industrialization strategies risk being reduced to paper plans with no meaningful impact on the ground.
A nation cannot build factories, run mines, or power innovation hubs in the dark.
Malawi’s pathway to industrial growth and job creation will remain blocked unless the energy crisis is resolved with bold, coordinated, and sustained action.
