Malawi’s energy sector needs an additional financing of K447 billion in the 2025/26 financial year to contribute to the achievement of the universal electrification target by 2030, according to Budget Analyst, Michael Kabaghe.
In the 2025/26 financial blueprint, the sector was allocated K468 billion, up from K268 billion in the 2024/25 fiscal year.
This comes as Oxfam Malawi, Civil Society Network on Climate Change (CISONECC), and the Centre for Environmental Policy and Advocacy (CEPA) are engaging with Parliamentary Committees on Natural Resources and Climate and Budget and Finance in Lilongwe on the matter.
Kabaghe has since provided an in-depth analysis of the budget allocations, execution and the implications of the financing levels on Malawi’s energy policy.
He has advised legislators to advocate for increased energy sector financing, especially from local resources and make a deliberate commitment on the part of the government to raise funds for the energy sector.
“This can be done by exploring tax and non-tax revenues without increasing the burden on the people,” he says.
Kabaghe has also tipped lawmakers to follow up with the Malawi Regulatory Authority (MERA) on the resolution of the non-compliance to the Fuel Levy and consider eliminating implicit fuel and energy subsidies that do not contribute to electrification goals.
Chairperson of the Budget and Finance Committee, Gladys Ganda, said the two they will engage the Finance Ministry to consider providing more resources to the energy sector and also provision of resources to the Malawi Rural Electrification Programme to increase access to affordable, reliable, sustainable, efficient and modern energy services for every person in the country.
