Malawi and Mozambique on Wednesday signed the power interconnection deal which will see the country buying electricity from Mozambique to address the long-standing power outages.
The power outages have been choking private sector growth and discouraging new investment into the country.
The deal, which the late president Bingu wa Mutharika turned down during his tenure on grounds of “huge” amounts to be paid to Mozambique to purchase the electricity, was signed by the two countries’ energy ministers at Kamuzu Palace in Lilongwe after Malawi President Joyce Banda and her counterpart, Armando Guebuza, and their delegations held bilateral talks.
Speaking during a press briefing after signing several agreements, Minister of Foreign Affairs and International Cooperation Ephraim Chiume said the deal has two phases to connect electric power from Matambo substation in Tete, Mozambique to Phombeya substation in Balaka and from Balaka to Nacala in Mozambique.
“It goes without saying that the project will improve power availability to people and public institutions as well as to industrial producers and service providers in the two countries,” said Chiume.
Minister of Energy Ibrahim Matola said Mozambique will finance the 200 km power connection from Tete to Balaka while Malawi will finance the 800 km extension of the connection from Balaka to Nacala.
Apart from the power interconnection agreement, Malawi and Mozambique also signed two other agreements on immigration matters and public security, and cooperation in science, technology and innovation.