Malawi, African Development Bank Sign $23 Million grant for Kapichira Power Plant Rehabilitation

The Government of Malawi and the African Development Bank (AfDB) have signed a US$23 million financing agreement aimed at full rehabilitation and modernization of Kapichira Phase I Hydropower Plant.

Speaking during the signing ceremony, Minister of Finance, Economic Planning and Decentralization, Joseph Mwanamvekha, commended the Bank for its continued support, noting that the investment is expected to improve the plant reliability and operational efficiency of the machines. He emphasized that improved power generation will stimulate growth in key sectors, including agriculture, mining, tourism, and manufacturing, while also creating jobs and boosting Malawi’s Gross Domestic Product (GDP).

AfDB Country Manager Macmillan Anyanwu said the Bank anticipates the funding will enable EGENCO to rehabilitate two turbines and two generator units at the Kapichira plant to restore the plant’s operational capacity and reinforce Malawi’s broader efforts to stabilize and expand electricity generation.

The support will also cover modernization of key systems such as electrical and protection systems, SCADA/plant control systems, monitoring and instrumentation systems, powerhouse and turbine‑generator components, and that will be followed by updating maintenance manuals and other related works.