Powering Malawi’s Growth: $55m Afreximbank Partnership Set to Energize Economy
Key Business Points
- Investment Opportunity: The African Export Import Bank (Afreximbank) is set to invest in Malawi’s $55.1 million 50 megawatts (mw) solar energy project at Nkhoma in Lilongwe, highlighting a significant foreign investment opportunity in the country’s energy sector.
- Partnership and Growth: The partnership between Press Corporation (PCL) plc and Afreximbank may lead to joint investments in other projects, such as those at PressCane, demonstrating the potential for collaborative growth and diversification in Malawi’s business community.
- Financing and Equity: Afreximbank could fund up to 70 percent of the project cost through debt and assist PCL in securing equity investors, showcasing the importance of access to finance and equity investment for local businesses, especially in the context of kuongolera kwa(mxito), or risk management, a crucial aspect of business development in Malawi.
The Malawi Stock Exchange-listed conglomerate Press Corporation (PCL) plc has engaged Afreximbank for investment into the solar energy project, which is earmarked to generate 50mw of power and feed into the national grid. PCL Chief Executive Officer Ronald Mangani confirmed that Afreximbank demonstrated appetite to support the projects and was eager to partner with PCL, highlighting the bank’s interest in energy investments in Africa. The discussions focused on financing PCL’s projects, notably the Nkhoma Solar Power Plant being implemented by Press Energy Limited (PEL), as well as possible joint investments in projects at PressCane, a subsidiary of PCL.
According to Mangani, Afreximbank could fund up to 70 percent of the project cost through debt and, if necessary, assist PCL in securing equity investors, emphasizing the importance of access to finance for local businesses. He also stated that PCL is injecting some 51 percent of the required equity and is at an advanced stage of securing the residual equity, demonstrating the company’s commitment to kujiwonga, or self-reliance, a key principle in Malawi’s business culture. The firm’s main focus is on implementing the solar project, which will contribute to the country’s energy security and economic growth.
In addition to the solar project, PCL is making significant progress in installing effluent treatment plants and syrup mill plants in its ethanol companies, as well as investments in the generation of industrial carbon dioxide, showcasing the company’s diversification strategy. The developments in the ethanol companies will also lead to the production of additional by-products such as bio-gas, fertiliser, and electricity, highlighting the potential for value addition and job creation in Malawi’s economy. Afreximbank President Benedict Oramah cited energy as one of the key sectors the bank is investing in in Africa, demonstrating the bank’s commitment to supporting economic development in the continent, especially in the context of zasintha, or innovation, a crucial aspect of business growth in Malawi.
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