The government of Malawi has found funding of US$ 150 million from IFC InfraVentures for the Mpatamanga hydroelectric project in Southern Malawi. IFC InfraVentures is an investment fund of the World Bank Group. IFC InfraVentures will now make decisions relating to the development of the hydroelectric project, including choosing the company to carry out the project.

The Environmental and social impact assessment (ESIA) and feasibility study for the hydroelectric project has been done since 2017. The Government has also launched tender for the same recently.

The dam will have a large reservoir. It will be built on the Shire River in Blantyre District, downstream of the Nkhula A HPP & Nkhula B hydroelectric dam (100 MW), the Tedzani hydroelectric dam (110.7 MW) and upstream of the Kapichira hydroelectric dam (128 MW). 

SN Power, a company based in Oslo, Norway, and Power Africa, are also supporting the project. SN Power has invested in numerous energy projects in Africa.

Electricity Generation Company Malawi (Egenco), the parastatal organization that transports and distributes electricity, is contemplating taking some of the water from the reservoir to boost the capacity of the Kapichira hydroelectric plant.