Yellow Malawi, an off-grid solar company, has secured a $2 million investment from Acumen’s Hardest-to-Reach (H2R) initiative.
The funds will help the company expand its inventory of solar home systems. This will provide energy access to 182,000 people, including 145,000 receiving electricity for the first time.
The investment will be disbursed in two parts. The first $1 million tranche will be in US dollars, with repayments in Malawian Kwacha.
A subsidy from TCX EU Market Creation Facility will lower hedging costs. The company will disburse and repay the second tranche in US dollars, reducing foreign exchange risks and supporting Yellow Malawi’s growth.
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Expanding Clean Energy in Malawi
Maya Khonje-Stewart, Yellow Malawi Co-Founder, welcomed the partnership. She said, “Acumen’s Hardest-to-Reach initiative understands the unique local context and has designed financing that not only meets our needs but also advances our mission to bring energy to those who need it most.”
Founded in 2018, Yellow Malawi provides solar home systems and mobile phones to rural customers. So far, it has served over 530,000 people with energy and 62,000 with smartphones.
Malawi remains one of the least electrified countries in the world, with only 11% of the population connected to electricity.
“The innovative structure addresses critical risks to our business and customers in Malawi and will allow us to reach more households with reliable and clean energy solutions,” Khonje-Stewart added.
H2R Initiative Impact Across Africa
The $250 million H2R initiative invests in solar companies across 16 underserved regions in Africa. Alongside Yellow Malawi, H2R has also invested $1.25 million in Zambia’s RDG Collective.
The funds will help provide energy access to 66,000 people and solar generators for 180 small businesses, driving local economic development.