Mining & Trade News

Local firm Rukuru Power Company says it is seeking a term loan of US$146.4 million to finance the construction of a 100-megawatts coal-fired power plant in Rumphi District, Malawi.

Managing Director of Rukuru Power Company Lincoln Bailey says in a brief of the project published by the Malawi Investment and Trade Centre that the project which will be developed in two phases as part of a broader 250MW project, is expected to offer a reliable baseload power supply to the national grid.

He states that the first 100MW phase will consist of two units of 50MW each, using coal sourced primarily from the nearby Mchenga Coal Mine and supplemented by coal from other domestic mines.

He explained that while the financial indicators for the project such as an Internal Rate of Return (IRR) of 10.2%, a net present value of US$27.8 million and a 10.8-year payback period demonstrate its feasibility, closing the financing gap remains a critical problem.

Bailey further discloses that although a Partial Risk Guarantee had initially been secured from the African Development Bank (AfDB), it was later withdrawn due to pressure from Western financiers who have adopted a no-coal funding stance.

“We are now actively seeking strategic investors or equity partners willing to support Malawi’s immediate energy needs with a realistic view of our context,” he says.

The planned site is located 16 kilometres north of Mchenga Mine, near the M1 road and about 500 metres from Lake Malawi. Power generated from the plant will be transmitted through a new 132kV line to a substation at Bwengu, approximately 65 kilometres to the south, facilitating integration into the national grid.

He explains that the company has already made significant strides in preparing the project for implementation. These include the signing of a Memorandum of Understanding (MoU) with the Ministry of Energy, a Power Purchase Agreement (PPA) Term Sheet with the Electricity Supply Corporation of Malawi (ESCOM), and an Engineering, Procurement, and Construction (EPC) contract with Power China.

He reveals that an Operation and Maintenance agreement has also been concluded with South Africa-based Murray and Roberts.

Bailey says the project is aligned with the Government of Malawi’s energy goals and it is a major step in addressing the country's chronic electricity shortages and boosting industrial productivity.

“This is a viable and strategic investment that will provide dependable electricity to support Malawi’s economic development. This plant will help stabilize electricity supply and meet rising demand”.

Rukuru Power Company remains optimistic about securing the necessary funding and pushing ahead with the project despite the shifting of global financing landscape for coal-based infrastructure.

Malawi is struggling with power blackouts that are mainly attributed to inadequate generation and unreliability of the system as the country mainly depends on hydropower which is affected by climate change induced problems such as floods.

The country is pushing to diversify to other sources such as coal, which is a reliable source of power, but funding for coal fired power projects is a problem with financial institutions preferring renewable energy projects.

Malawi’s other planned coal fired power plant, Kamwamba in Neno, is also seeking financing after feasibility studies were successfully completed.

The country has various deposits of coal mainly in the Northern Region and lower Shire areas.

Minister of Finance and Economic Affairs Simplex Chithyola Banda says the long-awaited construction of the 300MW coal fired power plant at Kam’mwamba in Neno District will cost US$800-million.

In the 2025 Economic and Fiscal Policy Statement, the Minister explains that Electricity Generation Company (EGENCO) completed a review and update of the feasibility study for the project which established the cost estimates of around US$800 million with engineering, procurement and construction pegged at US$600 million.

In the statement, Chithyola Banda also outlines other projects that the Malawi Government has lined up for the energy sector. He explains that as part of efforts to diversify Malawi’s energy generation sources, the Government is implementing the 50MW Salima Solar PV with Battery Energy Storage System (BESS)

The project will be executed in phases, with the first phase targeting 10 MW currently underway with civil works in progress, supported by a completed feasibility study and Environmental and Social Impact Assessment (ESIA) report.

The Minister also reports that preparations of the construction of the 358.5MW Mpatamanga hydropower plant are steadily in progress. The project is being developed under a Public-Private Partnership (PPP) with financing from the World Bank’s International Finance Corporation (IFC).

The project’s basic design was completed in May 2024 and construction works are expected to commence in 2025/26 Financial Year.

Chithyola Banda states: “There is also outstanding progress on the rehabilitation of Kapichira Dam which was damaged due to the impact of the Tropical Storm Ana that occurred in 2022, which extensively damaged intake dam rendering the hydropower station out of operation.”

“Phase 1 of the repairs to the dam was completed and all three machines at the plant were restored and are back online while Phase 2 of the project which involves reconstruction of the dam structure based on an improved design that will ensure resilience to floods commenced.”

Chithyola Banda also expresses government’s steady commitment towards achieving universal access to electricity by 2030.

He says: “This will require an average of 408,000 on-grid connections, 401,000 off-grid connections per year and substantial investment in generation, transmission and distribution infrastructure.”

“Government will also take advantage of the increasing demand of power within the region to export its excess generation.”

Chithyola Banda also says Government continues to implement the Malawi-Mozambique Interconnector Project with an objective of connecting Malawi and Mozambique’s electricity transmission system to enable the two countries to engage in bilateral and regional power trade in the Southern Africa Power Pool (SAPP).

He explains that the scope of the Project is to interconnect the Mozambique and Malawi Power Systems at 400kilovolts(kV) through a transmission line being constructed from Matambo Substation in Tete Province in Mozambique to Phombeya Substation in Balaka District in Malawi.

“Construction works are underway and currently overall progress is estimated at 62.3% whereas commissioning of entire project is expected between April and June, 2025,” says Chithyola Banda.

Meanwhile, the country’s current installed generation capacity is 556MW comprising 402MW from hydro (73%); 102MW from solar (18%); and 52MW thermal diesel (9%). Out of the 556MW, EGENCO generates 444MW, representing 80% of market share while Independent Power Producers (IPPs) generate 112MW.

To achieve 50% grid access by 2030, the country requires 1,200MW implying the need for additional generation capacity of 644MW.

The other power projects in the Policy Statement include the 132kV Eastern Backbone Rehabilitation Project, which will involve upgrading of the existing transmission network which carries power from the Southern to the Central and Northern Regions in order to improve the resilience of electricity transmission and distribution infrastructure in the country.

By Modester Mwalija

The Malawi government says it is seeking a strategic partner to invest USS76.2 million to develop the Chiweta Geothermal Power Generation Project in Rumphi, which will be developed in a public and private sector partnership arrangement.

This is highlighted in Malawi Investment Projects Compendium Volume published by the Malawi Investment and Trade Center.

The project will generate up to 10 MW of electricity, contributing significantly to the national grid and supporting the country’s industrialization goals.

The report says that the government’s preference is to develop the project through an Independent Power Producer (IPP) following a Build, Own, Operate and Transfer (BOOT) model with a 30-year concession period.

“A Special Purpose Vehicle (SPV) will be established to oversee the project’s implementation, ensuring efficient management of the development phase and future operations,” reads the report.

It says pre-feasibility studies conducted reveal that the project is technically, economically, financially and environmentally viable.

“This project is aligned with the government’s energy sector and economic development goals as outlined in the National Energy Policy and the Malawi Growth and Development Strategy,” the report reads.

The project’s key benefits include provision of additional power to the national electricity grid, thereby improving access to electricity for both households and industries. Employment opportunities will also be created during and after the construction phase of the project.

In addition to boosting local electricity supply, there is potential for Malawi to export surplus power generated from the project to generate foreign exchange revenue as government plans to connect to the Southern African Power Pool (SAPP).

The project will involve drilling to install a fluids conveyance system, power plant construction and construction of transmission line.

“Geoscientific investigations, including geological, geochemical, and geoelectrical surveys, have confirmed the feasibility of the project. These studies have enabled experts to develop a conceptual model of the geothermal field and outline its main characteristics, suggesting the project's technical and financial viability,” reads the report.

The project site is underlain by biotitic gneisses of the Basement Complex, covered by clastic sediments of the Karoo System and by a thin level of Quaternary deposits.

In a related development, the Malawi Government is seeking a strategic investor to develop the Fufu Hydropower Project on South Rukuru River in Rumphi district.

The Malawi Investment and Trade Centre explains in the compendium that Fufu is designed as a storage power plant through the reservoir formed by a 114m high RCC dam.

It, therefore, offers the possibility to be operated in base mode, following the load and responding to the instant changes in power demand. The guaranteed generating capacity of the station is 146.3 MW and the total installed capacity is 261 MW. The objective of the project is to increase the supply and reliability of power in the country.

“The geographical location of the power plant is very ideal for system voltage stabilization as it is situated in the northern region of Malawi which has no generating station rendering it prone to power quality issues due to long transmission distances. A feasibility study on the Fufu Hydropower Project is available,” reads the Compendium.

A Bankable feasibility study conducted for the project reveals that the investment cost for the project is US$702.5 million and the specific investment cost is US$2,700 per kW. The project Internal Return of Return (IRR) is approximated to be 12.1% and the levelized electricity cost is 3.5 US cents/kWh. Additionally, the project’s Net present Value is US$123 million.

The report says the project which proposes a 350MW hydro-power plant is technically, economically and environmentally feasible.

The Compendium reads: “The project is financially feasible and sustainable. The financial internal rate of return (FIRR) for the project ranges from 12% to 17.5% and a Net Present Value of between US$110.5 million and US$ 356 million respectively depending on the scenarios.”

“Additionally, the Cost-Benefit results of the project are very promising ranging from 1.03 (where construction is delayed by one year and the construction cost increased by 10%) to 1.35 where the construction cost is decreased by 10%.”

 “These results show that the project is financially viable as the revenues from the project are sufficient to cover its capital costs and operating costs and to provide the investor with adequate profit.

By Wahard Betha

The Ministry of Mining says it is finalizing the polishing of the draft Petroleum (Exploration and Production) Bill in order to formulate a new Act to manage the upstream petroleum subsector, which is currently governed using the Petroleum (Exploration and Production) Act 1983 currently considered outdated.

Director General for Mining and Minerals Regulatory Authority Samuel Sakhuta told Mining and Trade Review that Government is fast-tracking the drafting process to create a better legislative environment in the subsector which continues to attract interest from investors.

Government demarcated Malawi’s part of the Great African Rift Valley geological zone, which has potential for hydrocarbon prospecting into six blocks. The blocks were awarded to various multinational firms that later relinquished their licences due to the prevalence of the Covid-19 pandemic which made it difficult for them to mobilise staff and equipment to conduct the exploration work.     

Sakhuta said the Ministry has included a provision for re-demarcation of the existing big blocks in the new Bill to create room for more investors interested to conduct hydrocarbon exploration.

He said: “We have a draft bill that we are to submit to parliament at some point once polishing of the document is finalized.”

“Looking at the pressure that we have now from the investors who are interested in the sector, recently I presented a memo on the same to the Principal Secretary.”

“We are saying we want to come up with a solid and revised Act. In terms of re-demarcation, once the controlling officer gives a nod to that, we are much ready to re-demarcate.”

 “By demarcating, we will give a chance to many investors and have a high probability of getting what we are looking for very quickly.”.

Coordinator for Chamber of Mines and Energy Grain Malunga commended the move saying the subsector still carries weight in terms of energy sources.  

“Oil and gas will never be completely abandoned as a source of energy. There is a need to encourage exploration and development of the same,” said Malunga.

In a separate interview, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera also commended the Malawi Government for the move but further urged for full implementation of the laws.

Chabwera said: “The Ministry reviewed the petroleum policy last year which was a good move and hearing that they are now drafting a bill is progressive since the 1983 Act is long outdated.

“However, having good laws is not enough if there is no implementation and political will to see rule of law at work in this country.”

Chabwera also asked the Malawi Government to conduct due diligence on the companies applying for licenses and finalize the legal framework before rushing to grant any company a license.

By Modester Mwalija

There is substantial progress in a number of energy projects that are being implemented in Malawi in order to increase availability of power in the country, which will help a number of mining projects currently struggling to roll out operations due to lack of power to pass the feasibility test.

This is outlined in the 2023/2024 annual economic report published by the Ministry of Finance and Economic Affairs.

The report says that the government handed over the Kam’mwamba Coal-Fired Power Project to the Electricity Generation Company (EGENCO), after unfulfilled expectations from the EXIM Bank of China. EGENCO has since revised the feasibility study, estimating the project cost at US$600-million.

“The project’s completion, anticipated by 2030, is dependent on securing a joint venture for EGENCO to partner with a 50:50 possible share of the project cost between EGENCO and the joint venture partner,” reads the report.

The report highlights that despite some setbacks, the Mozambique-Malawi 400kV Interconnector Project is now expected to come online in October this year.

The report reads: “The progress achieved at the end of the 2023/24 financial year include compensation pay-outs for Project Affected Persons on the Malawi side and the revision of the Power Purchase Agreement with Electridade de Mozambique (EDM), which will increase power imports from 50MW to 120MW when the project is completed.”

The report also notes that in the period under review, ESCOM and Zambia Electricity Supply Corporation Limited (ZESCO) initiated a joint feasibility study, including Environmental and Social Impact Assessments and a Resettlement and Compensation Action Plan, on the Malawi-Zambia Interconnector which is aimed at integrating Malawi into the Southern African Power Pool (SAPP) by connecting to Zambia’s electricity grid.

“The initial phase will inject 50MW into Malawi’s grid, with the potential for future increases. Both companies have signed the Project Implementation Framework, marking a critical step towards realizing this project,” reads the report.

The report also says that the government is implementing the Mpatamanga Hydropower Project, set to deliver 361MW of clean energy under a Public-Private Partnership (PPP) arrangement.

The achievements in the 2023/24 financial year include incorporation of Mpatamanga Hydro Company Limited; ongoing negotiations for Power Purchase Agreements; Completion and approval of the Project Freeze Designs, continuation of environmental studies; and development of Resettlement Action Plans scheduled for completion by May, 2024.

The report says the government is also prioritizing the rehabilitation of the Kapichira Hydropower Station, which suffered extensive damage from Tropical Storm Ana in January 2022.

Funded by a $60 million World Bank grant, EGENCO successfully repaired all four damaged machines, restoring 129.6MW of power.

The report reads: “Phase I of the restoration is nearly complete, paving the way for Phase II, which will involve constructing a more resilient structure to protect against future storms. This project is crucial for safeguarding Malawi’s energy security, with completion expected by May 2027.”

On integrating solar energy into the national grid, the report says Malawi is implementing a 20MW Battery Energy Storage System (BESS) at the Kanengo substation in Lilongwe. The project, funded by a US$20-million grant from the Global Energy Alliance for People and Planet (GEAPP), reached financial closure in July 2023.

It says installation is expected to be completed by March 2025, providing essential additional services to stabilize the grid.

Furthermore, the report indicates that EGENCO is advancing the Nanjoka Solar Power Plant in Salima, a project expected to contribute 50MW to the national grid by 2029. Following the completion of feasibility studies and environmental assessments, construction began with the installation of an initial 10MW. The project, which had its groundbreaking ceremony in November 2023, marks a significant step towards diversifying Malawi’s energy sources.

 As detailed in the report, EGENCO also plans to double the capacity of the Wovwe Hydropower Station from 4.5MW to 9MW. In 2023, the Malawi Environmental Protection Authority (MEPA) approved the extension.

“Negotiations for the Power Purchase Agreement are nearing completion. Once finalized, construction will commence using EGENCO’s internal resources, further strengthening the country’s energy resilience,” states the report.

These projects represent a crucial investment in Malawi’s energy future, addressing both immediate needs and long-term sustainability goals. The successful completion of these initiatives will significantly enhance the country’s power generation capacity, reduce reliance on imports, and improve the overall stability of electricity.

The Ministry of Energy expects planned investments of approximately US$3.5 billion in order to meet the estimated energy demand by 2040.

The Regional Energy Regulators Association of Southern Africa (RERA) has expressed concern over low access to electricity in some countries in the Southern Africa Development Community (SADC) region.

RERA Executive Director Elijah Sichone raised the concern when the Malawi Energy Regulatory Authority (MERA) in conjunction with RERA held a series of meetings in Lilongwe aimed at advocating for access to electricity in SADC.

RERA is a formal association of independent energy regulators whose establishment was approved by SADC Ministers responsible for Energy in Maseru, Lesotho, on July 12, 2002.

RERA Executive Director Elijah Sichone said that it is important for the region is to address the issue of low access to electricity and also ensure power utilities are given cost reflective tariffs.

Sichone said: “As RERA we want to contribute to address the issues of access to electricity and one of them is to make sure that utilities such as ESCOM are given tariffs that are cost reflective, tariffs that will enable them to invest in expanding access.”

“We understand that expanding the grid to all parts of the nation is expensive, and as RERA we use our mentions to ensure that the whole population has access to electricity, and one of the mentions is mini grid.”

“This means having those areas without access to main grid having what we called solar home systems where you install solar systems to those houses at a fee to expand the access to electricity.”

Sichome, however, said it is encouraging that despite several countries in the region including Malawi having low access to electricity, some countries have managed 100% access

He said: “Access to electricity in the SADC region varies. We have member states in the SADC region who have done very well having access of 100% and we have other members who have not done very well in terms of access with very low figures.”

“We have Ireland countries like Mauritians and Seychelles having 100% access to electricity and also inland countries like Malawi having very low access to electricity. But general in the region we are at the order of 50% access to electricity,” he said.

In her remarks, MERA Consumer Affairs and Public Relations Manager, Fitina Khonje lauded the meetings saying they will provide a platform for in-depth discussions on recent regulatory and energy sector developments.

The meetings focused on on economic and technical regulation of the electricity, fuel and gas sectors, consumer services and communication, finance and audit, legal and legislative as well as human resource matters within the SADC energy regulation industry.

Khonje said: “These annual meetings are important because regional cooperation is not just for energy sector or regional interconnectors but for us to share information, experience on how we can regulate the energy sector.”

“Our role is to ensure that we balance appropriately the interests of operator and consumers. Operators should be able to run efficiently and consumers should have liability of supplies.”

“Though we are trailing in terms of access to electricity, the country is making progress in making sure that the population is connected to electricity.”

“For example the Malawi Energy Access Project (MEAP) has helped ESCOM to offload some of the back lops it has had in terms of connecting customers to electricity.”

Among others, RERA is mandated to facilitate a regional energy market that is efficient, integrated, harmonized, sustainable and investment friendly; develop and enhance the capacity of regulators; promote universal access to modern, clean, reliable, quality, and affordable energy services.

Apart from Malawi, other RERA member regulators are from Angola, Botswana, Eswatini, Lesotho, Mauritius, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe

The Malawi Government says it will put to tender the country’s vacant petroleum and gas exploration blocks once the Ministry of Mining finalises revising the previously demarcated blocks.

The Ministry of Finance and Economic Affairs says in the 2023 Annual Economic Report that since 2020 and following relinquishment of exploration licenses by investors due to Covid-19 pandemic, foreign investors are showing interest to occupy the tenements.

The report states that as per law, the companies that closed their offices in the country surrendered their findings to the Ministry of Mining making it easier for new investors to continue from where they stopped.

Reads the report: “The Ministry is working on revising the previously demarcated exploration blocks and once this is finalized, the petroleum exploration licenses will be tendered for investors to access.”

“Historically, Malawi has never produced oil and gas, however, in the decade between 2010 and 2020, several investors have shown interest in Malawi’s oil and gas resources by conducting exploration activities which have revealed that the country has the potential to produce both offshore and onshore oil and gas.”

“Though the investors relinquished their exploration rights due to economic constraints caused by the Covid-19 pandemic, geological data and information was passed on to the Ministry of Mining as required by the law.”

Besides potential for oil and gas, Malawi has a diverse mineral resource base consisting of energy minerals – coal and uranium; industrial minerals such as rare earth elements, bauxite (source of aluminium), and heavy mineral sands bearing titanium; niobium, tantalum, construction materials – rock aggregates (such as granite), clay, limestone; and precious metals and stones mainly gold and gemstones.

Many of the mineral resources have previously been explored and evaluated by Government and private investors whereby a wealth of geological data is available for investors to work with to develop economically viable mining operations.

The report says REE exploration in the country is showing significant potential as evidenced by exploration results by Lindian Resources Limited, an ASX-listed company running Kangankunde Project in Balaka district.

It says the tremendous results provide opportunities for investors into the project as well as other sites around the project that may have mineral potential.

The country has also made several gold discoveries being operated by Artisanal and Small-scale Miners (ASMs) in recent years but a definite exploration work is yet to conclusively define a significant gold resource viable for medium to large-scale operations.

“While the Ministry of Mining will continue to facilitate the formalization of existing small-scale mining groups, licensing regime is open to local individuals and registered bodies interested in participating in the sector,” reads the report.

Other notable mineral resources under development are rutile found in Lilongwe, which is a source of titanium; heavy mineral sands located in the lakeshore area of Mangochi and Salima bearing titanium, zircon, and other industrial minerals; and graphite in Lilongwe, which has vast industrial applications for example in batteries and lubricants.

The report also stresses that the Malawi Government continues to undertake a number of interventions to foster productivity, transparency, and accountability of the sector so that it contributes significantly to inclusive wealth generation and economic growth in line with the 2063 Vision.

Some of the key interventions include: maintaining public engagement on mining issues through social media, mainstream media, and other public forums; licensing and training of mining cooperatives and associations with a focus on health, safety, environmental management, and compliance with reporting and payment obligations for license holders.

The report also says the Government will proceed in negotiating and finalizing Mining Development Agreements with investors on key projects such as Kayerekera Uranium Mine (Lotus Resources), and Songwe Hill Rare Earths Project (Mkango Resources).

It further adds that the country has the interest to support mineral exploration programmes with quality data and technically competent personnel, while providing technical and statutory guidance to proponents; review the Mines and Minerals Policy to create a more attractive investment climate in the country; review the Petroleum (Exploration and Production) Act, including the subsidiary legislation and; review the Explosives Act including the subsidiary legislation.

“The Government will also operationalize National Mining Investment and Development Corporation to facilitate Public Private Partnerships, as well as finalize geo-mineral resource mapping across the country,” the report reads.

Since 2021, the mining sector has been growing due to a conducive legal and regulatory environment for the participation of all interested players, both local and international.

Malawi 2063 identifies mining as a key driver to the economic development of the country under the industrialization pillar in the country’s effort to achieve the upper-middle income status by the year 2063.

Mining has tremendous potential to support industrialization in Malawi which the report says has not been fully harnessed.

The sector contributes only one percent to national income, an indication of the need for more policy reforms to improve legal and regulation framework; administrative procedures, and building capacity to enhance oversight and local participation.

Business operators and residents of Milepa Trading Centre in Chiradzulu have expressed concern over a prolonged power outage in the area saying it is choking their businesses and creating insecurity in the area.

The area has had no electricity power since early November, a situation they allege has caused many to deplete their business capital and gains, as well as acute damage of household fresh supplies.

“Just imagine, some of us in the business of barbershops and showing videos have been relying on petrol and diesel generators; but considering the high cost of fuel, this is unsustainable. We are forced to do so because we have families to take care of, food to buy and wages to pay; this is unfair, ESCOM has choked our businesses and is killing us slowly, as our capital is gone and livelihood is threatened,” said Frank Matimati, who operates several barbershops, video showing business and a video burning outfit.

He further complained that he uses 7-Litres of fuel per day which is contributing to losses considering a litre of petrol cost costs around K2, 500.

“ESCOM is not being human as we have had no power from November to date, they have to find a solution,” he complained.

Chair for Milepa Business Operators, who is also a prominent maize mills’ operator in the area, Mc Brazio Mandawala, also extremely lamented over the delay by ESCOM to fix the problem caused by a scorched transformer, which he said has left the active trading centre in the dark, even during the peak business times of Christmas and New Year.

“It is worrisome that our confidence in the State electricity company is being taken for granted by some officials within the system. Just imagine, they brought us a small transformer, without the right specifications of our power demand here, and it burnt few hours after it was installed – now we do not know what they are thinking about us,” he said.

Mandawala, who is also Group Village Head Likhotho of the area, feels it would be fair for ESCOM to convene a meeting with the locals and business captains of the area, to explain what the company is doing about it.

He said: “People have lost their capital because of this problem, and that means they have lost their sore livelihood source. So, when we say that the ESCOM officials’ acts are inhuman, you should understand,” he said, stressing that the people of the area, along with members of the business community, are planning a massive demonstration against the power supply company, to showcase their bitterness.

“We soon intend to walk all the way to the District Council Offices, many kilometres away, then all the way to ESCOM offices in Blantyre, to express our bitterness. It is sad that some duty bearers do not have a human heart, they enjoy the suffering of others,” he said.

However, in an interview on Wednesday ESCOM’s Spokesperson Kitty Chingota said the company is aware of the problem and working hard to procure transformers that suits the specification of power supply in Milepa and other numerous places with the same problem.

“We are indeed aware of the Milepa problem, and we are very sympathetic of their problem. We ordered transformers of the right specifications, and are awaiting delivery so that we erect in such places – by the way, there are many other places that needs such transformers, but we are doing everything possible that our customers be serviced appropriately,” she said.

Chingota explained that the problem mostly is that such transformers are imported and they are not normally found readily available on suppliers’ counters, hence their manufacturing comes in after the orders are placed.

Illovo Malawi Sugar Group says it is exploring the possibility of investing in power generation.

In the extracts from the audited financial statements for the year ended August 31 released on November 29, 2023 signed by Chairman Jimmy Lipunga and MD Lekani Katandula, the Group says it wants to develop a power supply scheme with the potential to supply excess power to the national grid and other major projects, thereby ensuring robust business improvement and fair returns for all stakeholders.

Lipunga and Katandula reports that the Group is currently in negotiations with the Malawi Government regarding water abstraction from the Shire Valley Water project.

“The refinement of approaches to the agricultural recovery program, factory optimization initiatives, cost reduction efforts, and execution of commercial strategies will remain pivotal to the group’s efforts to continually grow and transform the business,” say Lipunga and Katandula.

They state that the group acknowledges the valuable contributions of its people and will continue to invest in talent growth and development for the benefit of both the business and the Malawian Community.

Meanwhile, Illovo’s business’s profitability continues to be impacted by the ongoing depreciation of the local currency, the Kwacha, against major trading currencies; significant increases in electricity and diesel prices; global supply chain disruptions for essential commodities on account of geo-political tensions adverse economic and climatic factors; regulatory changes; and other external shocks.

“The Group will persist in implementing strategies to ensure resilience and growth remain fundamental to its operations, with a particular emphasis on safety as a foundation for achieving these objectives”, reads the statement

The Group reported K272 billion in revenue for the year, setting a new record-high for the group representing a notable 46% increase over prior year. Profit before tax was recorded at K81.8 billion, represented a 113% growth over the previous year.