The Lunyina river flows from the western side of Nyika plateau and is a tributary of South Rukuru. The flow is capable of producing 7-20MW, depending on the technology used. A phased development is favoured, starting with a mini plant of 7MW.

Cost of investment: US$10.5-million.

Sector: Malawi has a power supply deficit (282.5MW against a demand of 344MW), which undermines the country's ability to attract investment. 95% of the power is generated at plants on the Shire River, and the remaining 5% is derived from a mini plant on Wovwe River. The planned development of phase II of Kapichira hydropower will help boost power supply in the medium-term. The government is currently seeking investors to build power plants on the Shire, Songwe, Bua, Dwambazi, South Rukuru and Ruo rivers. Uranium and coal reserves are other natural resources that Malawi is considering for power generation.

For further information on these investment opportunities and the incentives available for investors in the energy sector contact the Malawi Investment promotion Agency (MIPA).

Noel G. Lihiku

Planning and Research Manager, MIPA

For more information: http://www.tradeinvestafrica.com/investment_opportunities/1294124.htm