World Bank Funds Zambia-Malawi Project for Cross-Border Electricity Connection

Cross-border transmission can also allow countries with surplus electricity to sell it to neighbouring markets facing limited generation capacity.

Zambia and Malawi are moving closer to a new cross-border electricity connection that could improve energy security, widen access to regional power markets and support more reliable electricity for households and businesses. The World Bank has approved a $43 million International Development Association grant for the Zambia-Malawi Interconnector Project. The funding will support the construction of about 47 kilometres of transmission infrastructure in Zambia, forming part of a wider 192-kilometre, 400-kilovolt corridor between the two countries.

A New Route for Regional Power Trade

The interconnector will allow Zambia and Malawi to trade electricity more easily through regional markets. It is expected to give both countries access to a broader range of power suppliers, helping them manage shortages and reduce the impact of disruptions within their own systems.

Cross-border transmission can also allow countries with surplus electricity to sell it to neighbouring markets facing limited generation capacity. This creates a more flexible regional system and can help customers access lower-cost power when it is available. The project will establish another route for clean energy trade across Southern Africa, supporting efforts to diversify energy supplies and reduce dependence on a single source of power.

Reducing Zambia's Hydropower Risk

Zambia's 2024 energy crisis exposed the risks of relying heavily on hydropower during periods of drought and low water levels. The new link with Malawi is being presented as a strategic investment that can help Zambia build a more resilient and diverse electricity system.

A stronger grid connection can support business growth and productivity by improving the reliability of supply. More dependable electricity is also important for creating jobs, especially in industries, agriculture, services and small businesses that depend on consistent power to operate.

Malawi is also expected to benefit from access to regional electricity markets, giving the country more options to meet demand and strengthen its own energy security.

Part of a Wider African Energy Push

The project is aligned with the National Energy Compacts of Zambia and Malawi under Mission 300, a World Bank Group and African Development Bank initiative that seeks to expand electricity access to 300 million people in Sub-Saharan Africa by 2030.

It also forms part of the Regional Energy Transmission, Trade and Decarbonization in Southern Africa programme. The wider programme supports grid connections and policy improvements that can expand electricity trading through the Southern African Power Pool.

Sub-Saharan Africa has major energy resources, yet many countries still face low electricity access and insufficient generation capacity. Regional connections can help bridge that gap by sharing available power, supporting cleaner generation and making electricity systems better prepared for climate-related shocks.