Establishment of Rural Electrification Agency

The establishment of a semi-autonomous body will enhance governance of the Rural Electrification Fund. This will lead to increased electrification, rural transformation and wealth creation for the rural and peri-urban communities in Malawi. Therefore, it will consequently assist in achieving the following pillars in Malawi 2063;Mw 2063 Pillar 1: Agricultural Productivity and Commercialization, Mw 2063 Pillar 2: Industrialization which focuses on Industrializing Mining; Mw 2063 Enabler 5: Human Capital Development which focuses on Health and Nutrition; and Education and Skills Development,Mw 2063 Pillar 3: Urbanization which among others focuses on Development of Secondary Cities.

Mw 2063 Pillar 1: Agricultural Productivity and Commercialization which among other areas it focuses on Agricultural Diversification; Irrigation Development; Anchor Farms; Agricultural Inputs; Agricultural Mechanization; and Structured Markets. Malawi’s agrarian economy depends on the productivity of rural masses. Mechanisation and irrigation farming mostly depends on electricity. The Rural Electrification Agency will scale up productive uses of electricity for enhanced agricultural productivity and commercialization.

Mw 2063 Pillar 2: Industrialization which focuses on Industrializing Mining; Diversification, Value Addition and Competitiveness largely targeting Export Markets; Creation of Special Economic Zones and Export Processing Zones. Most mining activities take place in rural and remote areas. Over five large scale mining projects are failing to take off because of lack of reliable and uninterrupted supply of electricity. The establishment of the Rural Electricity Agency will enable investments in grid expansion that will target such economic sectors.

Inadequate electricity in rural areas has significantly contributed to post harvest losses and reduced value addition. If established, the Rural Electrification Agency will deliberately target rural areas where fruits, vegetables and animal products can be processed further for long shelf life and profitability.

Mw 2063 Enabler 5: Human Capital Development which focuses on Health and Nutrition; and Education and Skills Development. Effective delivery of health and education services is currently largely dependent on technologies. However, use of the technologies in most cases requires the availability of electricity in health facilities and schools. Therefore, inadequate electricity in rural areas has significantly contributed to low usage of the technologies thereby undermining the provision of quality health and education services. If established, the Rural Electrification Agency will deliberately target remote health and education facilities where electricity connection still remains a challenge.

Mw 2063 Pillar 3: Urbanization which among others focuses on Development of Secondary Cities; Investment in Cities and Towns that is regulated and controlled; Sustainable Municipal Self-financing Mechanisms; and Tourism Development. For these programmes to be achieved they will require electricity in the targeted areas. The Rural Electrification Agency shall have the autonomy in decision making and attain legal personality enabling it to pursue a clearly defined strategic direction.