Nevertheless, Malawi has faced significant energy limitations in recent years. The country grapples with inadequate transmission and distribution infrastructure, which leads to frequent power outages that obstruct both economic and social development. Two major natural challenges further complicate the situation: (i) climate change, which can result in decreased rainfall and reduced water availability for power generation, as well as severe storms that can damage electricity infrastructure; and (ii) environmental degradation, particularly deforestation, which exacerbates the siltation of water intakes at hydropower stations.

Given these challenges and the anticipated rise in energy demand, the Government of Malawi (GoM) must prioritize the development of a comprehensive long-term power generation strategy that embraces a balanced energy mix. Additionally, establishing a reliable transmission and distribution system is critical to minimizing energy losses and ensuring a sustainable power supply for the future. It is noteworthy that the government is committed to expanding the national electricity grid to improve the business environment, thereby facilitating progress toward its development agenda as outlined in the Agriculture, Tourism, and Mining (ATM) strategy. Under this strategy, Malawi focuses on fostering cooperation and investment to enhance productivity through commercialization and digitization, boosting industrialization, and promoting sustainability through climate-smart practices; electricity plays a pivotal role in achieving these objectives.