Yellow Malawi, an off-grid solar distribution company, has received a $2 million investment from Acumen’s Hardest-to-Reach (H2R) initiative. This funding will enable the company to enhance its inventory of solar home systems, aiming to provide energy access to 182,000 people, including 145,000 who will receive electricity for the first time.
The investment will be disbursed in two tranches: the first $1 million in U.S. dollars, with repayments in Malawian Kwacha, backed by a subsidy from the TCX EU Market Creation Facility to minimize hedging costs. The second tranche will also be disbursed and repaid in U.S. dollars, reducing foreign exchange risk and supporting sustainable growth.
Maya Khonje-Stewart, co-founder of Yellow Malawi, emphasized that the partnership with Acumen will help reach more Malawians in need of clean, affordable energy. Malawi is one of the least electrified countries globally, with only 11% of the population connected to electricity.
Founded in 2018, Yellow Malawi has provided energy solutions to over 530,000 customers and distributed 62,000 smartphones. The recent investment will also support the purchase of solar generators for 180 small businesses, contributing to local economic development.
The Acumen H2R initiative, a $250 million program, aims to activate clean energy markets in 16 underserved African countries, utilizing various financial instruments to support off-grid solar companies.
Philips Babatunde