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According to the World Bank, the Governments of Zambia and Malawi have, in line with the call for greater regional integration, agreed to strengthen their existing bilateral cooperation through, among other measures, the construction of the Malawi-Zambia Interconnector. To this effect, an Inter-Governmental Memorandum of Understanding (IGMoU) between the two countries was signed in August 2015. During the same period, an Inter-Utility Memorandum of Understanding (IUMoU) was also signed between ZESCO Limited and Electricity Supply Corporation of Malawi (ESCOM) Limited, the respective national power utilities of the two countries. Historically, Zambia and Malawi have had cross-border power trade at distribution level dating back to 2000, when ESCOM began supplying power to Zambian towns in the border area, in response to a resolution of the then Southern African Development Community (SADC) Council of Energy Ministers. From 2018, Malawi has also benefited from cross-border power supply from Zambia through a 33 kV line from Chipata to Mchinji.
The Interconnector represents a critical initiative to strengthen regional energy integration and security. The Government of the Republic of Zambia, through a letter dated June 6, 2024 (reference: MFNP/EMD/101/25/5), requested World Bank assistance for the Zambia-Malawi Interconnector Project. The proposed Project is formulated in response to this request and would be designed to address persistent electricity supply challenges in both Zambia and Malawi, while supporting the broader objectives of economic transformation, climate resilience, and regional cooperation within the Southern African Power Pool (SAPP).
The proposed interconnection consists of a 400 kV double-circuit overhead transmission line extending 192.2 km. Of this total, 145.6 km will be constructed within Malawi, connecting the Nkhoma Substation to the border, while 46.6 km will be built in Zambia, linking the border to the Chipata West Substation. Both terminal substations will be expanded to accommodate the new interconnection.
The proposed Project scope for Zambia comprises:
(i) a 46.6 km segment of a 400 kV double-circuit overhead transmission line from the Zambia-Malawi border to the existing Chipata West Substation;
(ii) the extension of Chipata West Substation; and
(iii) project management and technical assistance.
The feasibility studies (inclusing conceptual design), preliminary tender documents, Environmental and Social Impact Assessment (ESIA), and Resettlement Action Plan (RAP), financed by the European Union (EU) and Swedfund through SAPP, have been completed and reviewed by the World Bank team.
The rationale for the Project is compelling. Malawi is currently investing in new hydropower capacity, most notably the Mpatamanga Hydropower Storage Project (MHSP). Its financial sustainability is contingent upon securing credible off-takers to backstop ESCOM payments. The Malawi-Zambia Interconnector will enable Malawi to export surplus power from the MHSP and other renewable projects to Zambia, whose mining sector is experiencing significant expansion and constitutes a cornerstone of the national economy. Zambia's mining operations, particularly in the Southern Copperbelt, are currently constrained by power supply challenges and grid congestion. It will also enhance the resilience of both countries to climate variability, particularly droughts that have recently affected hydropower generation in the Zambezi basin. From a regional perspective, the Interconnector will facilitate cross-border electricity trade, system balancing, and long-term trading mechanisms. The Project is thus aligned with the strategic objectives of SAPP and the broader development goals of both countries. Additionally, the Interconnector will provide power to the Lobito Corridor--a strategic transport, industrial, and trade route centered on the railway line from the Port of Lobito in Angola to the Copperbelt regions of the Democratic Republic of Congo (DRC) and Zambia.
The proposed Project would constitute Phase 4 of the Regional Energy Transmission, Trade and Decarbonization in Southern Africa Multi-phase Programmatic Approach (RETRADE-SA MPA) program, approved by the World Bank's Board of Executive Directors on January 21, 2025, with the first phase being the Zambia-Tanzania Interconnector Project (P507033).
As stated on the company's website, ZESCO Limited is a Zambian national power utility that is owned by the Government of the Republic of Zambia. Its mandate is to supply electricity and energy solutions within Zambia and the Sub Saharan region.
Electricity Supply Corporation of Malawi (ESCOM) Limited is a state-owned company mandated to procure, transmit, distribute and supply electricity in Malawi as well as manage the Single Buyer and System Market Operations. ESCOM is a limited liability company, having been incorporated in 1998 under the Companies Act of 1984
At that time, ESCOM was a vertically integrated company mandated to generate, transmit, distribute, and retail electricity. However, following recommendations of Power Sector Reforms report in 2014 and the enactment of the Electricity Amendment Act in 2016, ESCOM was unbundled, and generation was carved out to form a separate state-owned generation company called Electricity Generation Company (EGENCO) Malawi Limited.
| Private Actor 1 | Private Actor 1 Role | Private Actor 1 Sector | Relation | Private Actor 2 | Private Actor 2 Role | Private Actor 2 Sector |
|---|---|---|---|---|---|---|
| ESCOM: Electricity Supply Corporation of Malawi | Contractor | Energy | contracts with | ZESCO Limited | Contractor | Energy |
World Bank Team Leader:
Patrick Thaddayos Balla - Senior Energy Specialist
Email: pballa@worldbank.org
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