Key Business Points
- Malawi to join the Southern Africa Power Pool (Sapp) in Q2 2025, enabling regional power trade through the Malawi-Mozambique Power Interconnector.
- Government assures availability of forex for up to $5 million (K8.7 billion) monthly electricity import costs once connected.
- Regional integration will boost system reliability, enable Malawi to both buy and sell power, and support industrial growth.
The Electricity Supply Cooperation of Malawi (Escom) Limited has confirmed it is strengthening the country’s energy system ahead of full integration into the Southern Africa Power Pool (Sapp). Speaking at the opening of Sapp’s 60th Executive Committee Meeting in Lilongwe this week, Escom board director Welford Sabola said the country is targeting major milestones in system reliability, market readiness, and infrastructure security before connecting later this year.
The Malawi-Mozambique Power Interconnection Project will allow Malawi to join the Sapp grid in the second quarter of 2025, ending years of energy isolation and allowing power to flow in both directions.
Sabola described the connector as “a lifeline” for the utility’s evolution from a purely transactional operator into a strategic partner in regional electricity trade. He emphasized the need for technical readiness, market restructuring, and capacity to both import and export electricity to meet the new obligations. This represents a major shift for Malawi and could open up opportunities for local businesses and industries that have long suffered from blackouts.
Chief Secretary to Government Justin Saidi said authorities are prepared to handle the projected monthly foreign exchange liability, estimated at $5 million (about K8.7 billion), once imports begin. “The economy has stabilised and import cover is also on a good footing,” he said, expressing confidence that macroeconomic improvements will ensure funds are available for regional purchases starting in the second quarter.
Sapp Coordinating Committee executive director Stephen Dihwa indicated the grouping will champion full regional integration, with all Sadc countries expected to be interconnected by 2028. Tanzania, currently unconnected, will link through the Zambia-Tanzania Power Interconnector, while Angola is on the connectivity roadmap. He stressed the urgency of expanding and upgrading transmission networks, noting that existing bottlenecks could hinder progress.
Currently, only South Africa, Mozambique, Angola, and Tanzania have surplus generation in mainland Sadc. Malawi, Angola, and Tanzania are not yet connected to the regional grid. Once the Malawi-Mozambique line is energised, the country will initially be able to import up to 50 megawatts, with the potential to increase capacity according to demand.
The pool was established in 1995 to facilitate cross-border electricity trading, and by extending through to the Eastern Africa Power Pool via the 2028 Zambia-Tanzania interconnector, it aims to create a larger integrated market to support manufacturing and economic growth across the continent.
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