8 January 2019

Malawi: German to Invest in Bioenergy for Malawi

The Government of Germany is considering starting a new cooperation with Malawi Government in the field of Bioenergy in order to boost the country's energy sector.

German Federal Minister of Economic Corporation and Development, Dr Gerd Muller said this at Kamuzu Palace in Lilongwe on Monday in an audience with President Peter Mutharika.

The remarks come amidst Mutharika's acknowledgement of the country's challenges in the energy sector.

Muller said there is need for Germany and Malawi governments to identify where implementation of programmes of this sector can be done in future considering the huge potential that Malawi has in Bioenergy.

"This country has a huge potential with regards to biomass, water, wind or solar energy. We need to expand on this sector," he said.

Muller observed that developing energy does not only happen in cities but throughout the country, as such, there is need to intensify efforts in the energy sector using the locally available resources to reach out to all corners of the country.

He said the decentralized form of energy such as Bioenergy is vital for improving rural livelihoods which can benefit small scale farmers.

"We will try to win investors to come to Malawi and invest, especially in the energy sector. We must take the sector forward in this country," he said.

President Mutharika acknowledged the serious challenges that Malawi is facing in the energy sector which he said needs urgent attention.

"Malawi is facing serious challenges in the energy sector because of climate change and a drop in the water levels in the lake. We would like to diversify the power sector to other areas such as renewable energy, wind, solar and thermal among others," said Mutharika.

The drop in water levels in Lake Malawi has led to reduced amount of water required to generate enough power.

The President disclosed that the energy sector in the country has been liberated such that private sectors can come in.

On this note, Mutharika invited the German companies to come and participate in the energy sector in order to give the sector the much needed boost.

Germany is assisting Malawi in areas of agriculture, education as well as health and infrastructure which have received a total of 250 million Euros (over K206 billion) worth of support.

Malawi and Germany have embarked on negotiations on which projects to take in 2019 valued at 58 million Euros (over K48 billion).

The support to agriculture sector is meant to improve connectivity by establishing an agriculture centre in Malawi which will increase value creation and connectivity thereby achieving fair pricing and fair trade.

Malawi and Germany have been in bilateral partnership for 55 years now.

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