The lack of funds from the Malawi government led to the cancellation of the agreement with Mozambique to increase the 70 megawatts of electricity supplied to that country.

Mozambique must supply Malawi with 50 megawatts of electricity, and it was planned to increase this from 70 megawatts to 120 megawatts in order to meet the country's energy needs.

The agreement, according to Radio MozambiqueThe agreement was supposed to have been signed at the end of last week. A Malawian delegation was already on its way to Mozambique, but was stopped by the country's Ministry of Finance.

The government entity believes that, before going ahead with a new agreement, the grey areas in the Mozambique-Malawi electricity interconnection project should be clarified.

In fact, Malawi has stabilized its energy needs with the installation of solar systems, so the country doesn't seem to need more than 70 megawatts.

If the agreement goes ahead, Malawi may have to pay bills to Mozambique, even if it doesn't use the remaining energy. The project provided for the payment of 10 million dollars each month.