[{"bbox": [158, 151, 1073, 205], "category": "Text", "text": "emanating from the pandemic are affecting Malawi's economy, including: (i) disruption in global value chains and trade and logistics; (ii) decrease in tourism; and (iii) decrease in remittances."}, {"bbox": [158, 217, 1073, 374], "category": "Text", "text": "Malawi has overall a mixed governance record with the soft institutional infrastructure related to economic and political governance remaining weak. The High Court annulled the 2019 presidential elections due to a high number of irregularities, and the re-run in June 2020 saw the opposition take over. The new administration has so far shown commitment to the rule of law and human rights, and its drive on anti-corruption is reflected in the increased budget allocations for the governance institutions."}, {"bbox": [158, 388, 1073, 522], "category": "Text", "text": "In January 2021, the Government launched its development plan, the Malawi 2063 that aims at transforming Malawi into a wealthy and self-reliant industrialised upper middle-income country. The Malawi 2063 first 10 year Implementation Plan (MIP-1, 2021-2030) outlines priority objectives and interventions with the aim to move Malawi into the lower middle-income category by 2030, and meeting most of the SDGs of the 2030 Agenda."}, {"bbox": [158, 534, 1073, 693], "category": "Text", "text": "The development of trade and private sector in landlocked Malawi faces multiple obstacles, including high transport costs, low connectivity and low levels of regional integration and underdeveloped energy networks. The business climate also suffers from a lack of skilled workforce, inefficient public institutions, and difficulties in accessing credit. Malawi's trade is unstable, characterised by export bans, lack of infrastructure, inadequate diversification and value addition, and its trade balance is structurally in deficit."}, {"bbox": [158, 706, 1073, 813], "category": "Text", "text": "In this context, also the Economic Partnership Agreement (EPA) can support Malawi's efforts in addressing trade related issues. Malawi can join the interim EPA with five countries of eastern and southern Africa and participate in the negotiations for the deepening of this agreement, including a trade and sustainable development chapter."}, {"bbox": [158, 825, 360, 849], "category": "Section-header", "text": "### Energy sector context"}, {"bbox": [158, 857, 1073, 1122], "category": "Text", "text": "Malawi 2063 expresses aspirations for modernisation and industrialisation of the economy with energy playing a central role in this development. However, the country has the lowest national electrification rate of the Southern Africa Development Community (SADC) region with an access to electricity rate of only 11 %⁹. Rural and urban electrification rates are estimated at 4 % and 42 %, respectively¹⁰. The few households that benefit from modern energy services are usually located in urban and peri-urban zones and in close proximity to the medium voltage distribution network operated by the Electricity Supply Corporation of Malawi (ESCOM) along the development corridor that is situated roughly along the north-south axis of the country, serving approximately 423,455 consumers as of December 2018. It is estimated that 90 % of the population live 10 kilometres (km) from the main grid."}, {"bbox": [158, 1134, 1073, 1399], "category": "Text", "text": "High levels of poverty mean that 95 % households are dependent on traditional firewood (77 %) and charcoal (18 %) for cooking while only 2 % uses electricity. Lighting is dominated by the use of batteries (53 %) followed by electricity (11 %) and solar lighting (7 %) with 6 % of the population using candles. The number of households without electricity has been estimated at 3.2 million. There is a steady increase in energy demand driven by rapid population growth and slow but steady economic growth. Given high levels of poverty and low levels of economic activity, the household sector has the highest energy demand, accounting for 83 % of net energy consumed. Energy intensity, measured as the ratio of electricity consumption to real Gross Domestic Product (GDP), is predicted to increase by a factor of 3 between 2017 and 2037¹¹, which is substantial but consistent with Malawi's aspirations to become a middle-income country by 2063."}, {"bbox": [158, 1412, 1073, 1465], "category": "Text", "text": "To address power generation needs, the Government developed the Integrated Resource Plan (IRP 2016-2020, under review) as a strategic roadmap for Malawi to secure reliable and cost-effective"}, {"bbox": [147, 1514, 733, 1539], "category": "Footnote", "text": "⁹ https://www.se4all-africa.org/seforall-in-africa/country-data/malawi/"}, {"bbox": [147, 1539, 740, 1563], "category": "Footnote", "text": "¹⁰ https://www.se4all-africa.org/seforall-in-africa/country-data/malawi/"}, {"bbox": [147, 1563, 688, 1588], "category": "Footnote", "text": "¹¹ Source: Integrated Resource Plan (IRP) for Malawi, May 2017"}, {"bbox": [977, 1663, 1081, 1687], "category": "Page-footer", "text": "Page 5 of 25"}]