POWERING MALAWI’S FUTURE: RELIABLE, SUSTAINABLE ENERGY FOR ALL
7.1 Overview
Malawi’s economic transformation hinges on one critical foundation: energy.Without affordable, dependable, and sustainable energy, the potential for a thriving agricultural revolution, an expanding tourism sector, an efficient mining industry, and impactful industrialization will remain unrealized. Currently, only 18% of Malawians have access to electricity, leaving rural areas almost entirely underserved.Challenges in the energy sector include:

• Poor visionless leadership, leading to lack of good decision making and lack of adoption for newer energy generation technologies
• Over-reliance on climate-vulnerable hydropower, leading to frequent outages.
• Inadequate generation capacity, constraining industrial and economic growth.
• Aging transmission lines and poorly positioned poles resulting in significant annual maintenance costs for the government.
• Over-dependence on biomass, causing deforestation and environmental degradation.

• Inefficiencies and corruption in electricity and fuel procurement.
• Absence of diverse logistical options for fuel transportation leading to costly fuelhaulage. with MW2063’s pillars of Economic Resilience, Industrialization, and Environmental Sustainability, and leveraging enablers such as Governance, Technology Adoption, and Private Sector Dynamism, UTM recognizes energy as the engine of Malawi’s transformation. A bold, transformative energy agenda will unlock sustainable development and equitable progress for all income status.
  Malawi, too, can achieve such a transformation by leveraging its unique assets and aligning with MW2063 to build a sustainable tourism industry.

7.2 UTM PLEDGES: ELECTRICITY
7.2.1 Clean Energy Economy
Alignment with MW2063: Promotes Environmental Sustainability and Private Sector Dynamism by investing in renewable energy and green jobs.
UTM Pledges:

• Massive Investment in Renewables: Develop large-scale solar and wind farms,geothermal energy, and hydropower upgrades, creating 50,000 green jobs and reducing biomass reliance.
• Tax Exemptions for Renewables: Remove duties and VAT on solar panels, solar geysers, and wind turbines to make clean energy accessible.
• District Solar and Wind Farms: Establish solar farms in every district and wind farms in areas like Chikangawa and Dedza.
  7.2.2 Expanding Generation Capacity Triple household electricity access by accelerating the completion of key projects such as the Mpatamanga and Kholombizo Hydropower Plants, the Kamwamba
  Coal-Fired Power Plant, and various renewable energy initiatives.
  Alignment with MW2063: Advances Economic Resilience and Industrialization by ensuring reliable energy for industrial parks and agro-processing.
  UTM Pledges:
• Increase generation capacity from 500 MW to 2,000 MW by 2030.
• Reduce hydropower dependency by integrating solar, wind.
• Promote solar-powered mini-grids for rural electrification.
• Develop waste-to-energy plants in cities like Mzuzu, Lilongwe, Zomba, Blantyre..
• Establish Malawi as a regional leader in new energy technology research and adoption, with investments in infrastructure and export capacity

7.2.3 Reforming ESCOM and Transmission Capacity
Alignment with MW2063: Strengthens Governance by promoting transparency and efficiency in energy services.
UTM Pledges:

• Invest in new durable metal transmission lines, and reposition power lines in neighborhoods, away from tree lines where possible. Use underground cabling within the cities – starting with the Smart Cities and new neighborhood developments.
• To enhance investment and expand infrastructure development with speed,we will involve the Public Private Pension Investment Corporation (PPIC) in the transmission sector
• Certify private companies for meter supply and electricity installation to combat corruption and inefficiencies.
• Transition ESCOM to performance-based management and clear its debts.
• Subsidize grid connection fees for low-income households and small businesses.
  7.2.4 Renewable Energy for Government
  Alignment with MW2063: Demonstrates leadership in Environmental Sustainability by transitioning government operations to renewable energy.

• UTM Pledges:
• Equip all government buildings, schools, and health facilities with hybrid energy solutions like solar alongside Escom to reduce costs by 2030.
• Transition traffic lights and city lighting systems to solar energy.
  7.2.5 Energy Efficiency and
  Conservation
  Alignment with MW2063:
  Promotes Technology Adoption by encouraging energy- efficient
  practices.

UTM Pledges:

• Remove or reduce import duties on energy-efficient appliances to promote conservation.
• Reduce Duty on All Electric or Hybrid Vehicles.
• Incentivize petrol stations to add charging stations and reduce all duties on electric charging stations.
  7.3 ACCESSIBLE AND AFFORDABLE FUELS
  7.3.1 Addressing Fuel Inefficiencies
  Alignment with MW2063: Supports Economic Resilience by ensuring stable fuel supply and reducing costs.Malawi’s current fuel procurement system, managed by the National Oil Company
  of Malawi (NOCMA), relies on multiple intermediaries and competitive bidding with international traders, while private oil marketing companies (OMCs) oversee domestic distribution. This layered structure inflates fuel costs through added mark-ups, causing supply inefficiencies and vulnerability to market volatility.

1. UTM’s Commitment to Fuel Procurement Reform
   To ensure fuel security and cost efficiency, UTM will implement direct government procurement from international suppliers, to eliminate those costly intermediaries. Under the visionary leadership of Dalitso Kabambe and the UTM, our initiatives will drive transformative reforms in Malawi’s fuel sector. These are;

• Reform the Procurement System: UTM will amend relevant legislation to empower NOCMA or establish a dedicated fuel procurement agency to negotiate directly with international suppliers, cutting out unnecessary middlemen.
• Secure G2G Agreements: Establish transparent government-to-government deals with fuel-producing nations to secure stable, affordable fuel supplies.
• Reduce Fuel Prices: Implement cost-control mechanisms to ensure that savings from direct procurement translate into lower pump prices for Malawians.
• Enhance Transparency and Accountability: Introduce strict oversight measures, including regular public audits, to ensure procurement processes are corruption-free.
• Strengthen Fuel Infrastructure: Invest in modern storage and distribution infrastructure to improve supply chain efficiency.
• Diversified Supply Chains: Maintain multiple supplier relationships to avoid overreliance on a single source.
• Private Sector Engagement: Allow private OMCs to operate alongside
  government procurement, ensuring market competitiveness

2. Promoting Rail and Pipeline Transportation for Fuel To further enhance efficiency and reduce costs, UTM will:

• Shift Fuel Transport to Rail: Aim to transport 70-80% of Malawi’s fuel by rail by

2. This shift will significantly reduce transportation costs, minimize road wear and tear, and enhance supply chain reliability.

• Integrate Trucking with Rail: Transition truckers to a multimodal system where their tankers are transported via rail on key Mozambique route segments, reducing fuel consumption and operational costs. Truckers will continue handling local shunting and last-mile deliveries, ensuring a win-win scenario, job retention while enhancing efficiency and sustainability.
• Explore Pipeline Connectivity: Engage Tanzania to assess the feasibility of extending a pipeline from Mbeya to Karonga (250 km), linking Malawi to the existing TAZAMA pipeline that runs from Dar es Salaam to Ndola (Zambia). This connection would enhance fuel security, reduce transportation costs, and optimize supply to Karonga Fuel Depots for national distribution. Expected Outcomes
• Reduction in Fuel Prices at the Pump: Lower transportation and procurement costs will translate to affordable fuel prices for Malawians.
• Improved Fuel Supply Security: Diversified supply routes and infrastructure will mitigate risks of shortages.
• Enhanced Government Savings and Revenues: Efficient procurement and transport methods will optimize spending.
• Strengthened Foreign Exchange Reserves: Controlled procurement costs will reduce pressure on foreign reserves.
• Transparent and Accountable Processes: Regular audits and public oversight will ensure corruption-free fuel management.

UTM Pledges:

• Introduce tax exemptions on gas stoves and LPG cylinders to encourage gas adoption and reduce reliance on charcoal and diesel for residential generators.
• To bring into Malawi the first Hydrogen Gas Solutions by 2030

• Develop a National Renewable Energy Manufacturing Hub for solar to create jobs and reduce import reliance.
• Launch a National Renewable Housing Plan, requiring all new homes to include solar systems.
  7.4.2 Energy for Industrial Growth
  Alignment with MW2063: Powers industrialization and agriculture by providing reliable energy to critical sectors. Vision Highlights:
• Enable 24/7 operation of industrial parks and agro-processing plants.
• Support Mega Farms with energy for irrigation and storage.
• Drive mining value addition by powering smelters and refineries.
  7.4.3 Equitable Access
  Alignment with MW2063: Reduces the urban-rural divide by prioritizing rural electrification and affordability.
  Vision Highlights:
• Expand mini-grids to electrify rural areas.
• Subsidize energy connections and promote renewables to ensure equitable access.

7.5 Estimated Investment and Funding Mechanisms
Estimated Investment: $5-7 billion over the next decade for renewable energy, grid expansion, and fuel infrastructure. Funding Sources:

• Government Budget Allocation: Dedicate 5% of the National Budget for infrastructure development, while focusing more on;
• Public-Private Partnerships (PPPs): Mobilize private sector investment for renewable energy partnership projects and fuel depots.
• Loans: Work with World Bank and IMF to fund major projects like Dams.
• Private Sector participation: Incentivize local and FDI investors to play a role in the Energy sector
• International Climate Funds: Access grants and low-interest loans from organizations supporting green energy initiatives.
• Pension Investment Funds: Utilize the Public Private Pension Investment Corporation (PPPIC) for financing long-term energy infrastructure.
• Revenue from Energy Levies: Allocate a portion of energy levies to reinvest in the sector.
• Stock Market Listings: Float renewable energy projects to attract private investment.
• Crowdfunding & Fintech Solutions: Use digital platforms such as GoFundMe, Kiva, and energy crowdfunding initiatives to enable broad-based micro-contributions towards energy projects.
• Diaspora Bonds & Investment Funds: Draw some funding from the newly formed Dziko Bond and other Investment Funds for project implementation.