The European Union, has committed to financing two impactful projects that respond to the objectives of the Malawi 2063 and fall under the priority areas of the EU Global Gateway strategy.

The first financing agreement will unlock funding for the rehabilitation of the Eastern Backbone power transmission line. The required funding comes from the European Investment Bank – a concessional loan of EUR 55 million – and from the European Union a grant of EUR 30 million. The Africa Development Bank will also invest in this project in parallel.

This project, which ESCOM will implement, will construct a new 132 kV line on steel-latticed towers to replace the now unreliable 42-year-old wooden pole-mounted lines. The line serves important domestic, agro-based industries, mining projects and rural growth centres. The project will increase the reliability of electricity supply and reduce transmission losses. It also contributes to climate and environment objectives, and builds the resilience of critical infrastructure.

The second financing agreement commits EUR 8 million from the European Union’s budget to support civil society organisations in Malawi in their role as actors of development. The premise of this project is that civil society can play a pivotal role in driving job creation for youth in Malawi, and that this can be achieved through building strong partnerships with government and the private sector. Under the programme, CSO’s will be invited to develop and test innovative solutions aimed at enhancing job opportunities and private sector dynamism. The sustainability of such initiatives will be ensured through building strong partnerships with government and the private sector.