Malawi, US sign K28 bn solar power deal

Written by  MBC Online

Malawi and Unites States of America have sealed  a multimillion-dollar deal which will bring US$36.7 million (about K28 billion) in US’s Overseas Private Investment Corporation (OPIC) loans to build a 26 Megawatt solar power facility in Nkhotakota.

A Solar Plant A Solar Plant

The solar project leverages state-of-the-art power grid and power sector reforms that were part of the US Millennium Challenge Corporation’s first compact in Malawi.

The Nkhotakota solar power facility will be one of the first two projects spearheaded by Independent Power Producers, a private sector breakthrough in Malawi and a top goal of the MCC’s first Compact.

During the signing ceremony, US Ambassador Robert Scott stated that financing the deal has the potential to attract more private sector investments from international finance institutions.

Some of benefits from the OPIC agreement is the facilitation of up to US$700 million in financing to private sector deals in Malawi.

In the near future OPIC will complement its portfolio with equity investments combined with the private equity that make up these deals, the total investment could exceed $1 billion across multiple sectors.

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