Banks challenged to fund energy projects

By Chimwemwe Mangazi:

Commercial banks have been urged to take a leading role in financing Independent Power Producers (IPPs) willing to invest in the local energy sector.

Energy, Mining and Natural Resources Minister, Aggrey Massi, said this in Lilongwe on Tuesday at the start of the Regional Electricity Regulation Association (Rera) Conference.

Massi said, out of the five IPPs under scrutiny, only one is local.

“We need local companies to participate but, sometimes, they fear that they might not have the financial muscle and that is where the bankers have to come in and assist,” Massi said.

Bankers Association of Malawi President, Kwanele Ngwenya, said the banking sector has been there to support energy projects just that individual banks were working in isolation in offering such solutions.

He said prevailing energy challenges would be seen as an opportunity for investors.

“I think there have been attempts by different banks, but we do it in isolation. As an association, we have taken a strong approach on issues of energy to make sure that we are part of the conversation.

“It is important to be part of the conversation on energy and renewable energy development,” Ngwenya said.