This funding will allow the company to expand its inventory of solar home systems, providing energy access to 182,000 people, including 145,000 who will receive electricity for the first time.

The investment will be released in two phases. The first tranche of $1 million will be disbursed in US dollars, with repayments made in Malawian Kwacha. To mitigate hedging costs, a subsidy from the TCX EU Market Creation Facility will support this.

The second tranche will be both disbursed and repaid in US dollars. This structure helps Yellow Malawi manage foreign exchange risks and sustain its growth.

Maya Khonje-Stewart, Co-Founder of Yellow Malawi, highlighted the importance of the partnership with Acumen in helping the company achieve its goal of providing clean, affordable, and reliable energy to more Malawians.

“Acumen’s Hardest-to-Reach initiative understands the local context and has designed financing that not only meets our needs but also furthers our mission of expanding energy access,” she stated.

Malawi faces significant energy challenges, with only 11% of its population connected to electricity. While 42% of urban residents have access to power, only 4% of rural households are electrified.

Yellow Malawi, founded in 2018 by Mike Heyink and Maya Stewart, provides solar home systems and mobile phones to rural and off-grid customers in Malawi.

The company has already served over 530,000 customers with energy solutions and 62,000 people with smartphones.

In 2023, Yellow Malawi secured $14 million in Series B funding to support its expansion into Rwanda, Uganda, Zambia, and Madagascar, as well as to launch digital and financial products.

Acumen’s Hardest-to-Reach initiative, a $250 million program, aims to promote clean energy in underserved markets across 16 African countries, including Malawi.

Alongside its investment in Yellow Malawi, Acumen’s H2R initiative has also invested $1.25 million in RDG Collective, a Zambian solar energy distributor.

This investment will provide energy access to 66,000 people and supply 180 small businesses with solar generators, contributing to local economic growth.

With these strategic investments, Acumen’s H2R initiative continues to advance its mission of bringing clean energy to some of the most underserved regions in Africa.