World Bank Backs Zambia-Malawi Power Link with $43 Million Grant

The project is expected to diversify electricity supply, improve resilience to climate-related disruptions and create a new route for clean energy trade within Southern Africa.

Zambia and Malawi are moving closer to a stronger and more reliable electricity network after the World Bank approved $43 million in financing for a cross-border transmission project that will improve energy security, expand regional power trade and support economic growth across Southern Africa.

The funding, provided through the World Bank's International Development Association (IDA), will support the Zambia-Malawi Interconnector Project, which includes the construction of around 47 kilometres of transmission infrastructure in Zambia. The work forms part of the wider 192-kilometre, 400-kilovolt Malawi–Zambia Interconnector, designed to connect the electricity grids of both countries.

Cross-border power trade to strengthen energy supply

The interconnector will allow Zambia and Malawi to access regional electricity markets more effectively, making it easier to share power across borders and reduce dependence on domestic generation alone. The project is expected to diversify electricity supply, improve resilience to climate-related disruptions and create a new route for clean energy trade within Southern Africa.

The initiative also supports the National Energy Compacts of both countries under Mission 300, a joint programme led by the World Bank Group and the African Development Bank that seeks to expand electricity access to 300 million people across Sub-Saharan Africa by 2030.

Reducing reliance on hydropower

The World Bank said Zambia's energy crisis in 2024 highlighted the risks of depending heavily on hydropower, particularly during periods of drought and changing weather patterns. World Bank Group Country Manager for Zambia Martine Valcin described the Zambia-Malawi Interconnector as a strategic investment that will strengthen the country's long-term energy security while supporting a more diversified and sustainable electricity sector.

She said the project would help build a stronger power system capable of supporting economic growth, improving business productivity and creating more employment opportunities through reliable and affordable electricity.

Building a more connected regional grid

Although Sub-Saharan Africa has abundant energy resources, electricity generation remains unevenly distributed, with some countries producing surplus power while others continue to face shortages and low access rates.

The World Bank said expanding cross-border electricity trade allows countries to share available generation, lower electricity costs, diversify energy sources and improve access to larger regional markets.

Yadviga Semikolenova, the World Bank's Energy Practice Manager for Eastern and Southern Africa, said closer regional cooperation is essential to solving Southern Africa's energy challenges. She noted that stronger transmission links and greater clean energy trade would help build a more resilient and interconnected power system capable of supporting the region's growing economies.

Part of a wider regional energy strategy

The Zambia-Malawi Interconnector forms part of the Regional Energy Transmission, Trade and Decarbonization in Southern Africa Multi-Phase Programmatic Approach (RETRADE-SA MPA). The programme is designed to strengthen electricity grid connectivity and create the conditions needed for increased power trading across the Southern African Power Pool (SAPP).

By improving regional infrastructure and enabling greater energy cooperation, the project is expected to deliver more stable electricity supplies while supporting long-term economic development across Southern Africa.