Zambian, Malawian Off-grid Solar Companies Bank $3.25m From Acumen Fund

Yellow Malawi and Zambia’s RDG Collective have secured a combined US$3.25 million in debt investment from Acumen’s Hardest-to-Reach (H2R) initiative. This funding aims to boost clean energy access in some of Africa’s most underserved regions.

Yellow Malawi, a distributor of solar home systems and mobile phones, received US$2 million to expand its energy services to rural, off-grid areas. This investment will enable the company to provide energy access to 182,000 people. The first US$1 million tranche will be disbursed in US dollars, with repayments in Malawian Kwacha, thanks to a subsidy from the TCX EU Market Creation Facility, which helps reduce hedging costs. The second US$1 million tranche will be disbursed and repaid in dollars, offering Yellow Malawi greater financial stability by reducing FX risks.

“This partnership with Acumen allows us to reach even more Malawians who deserve access to clean, affordable, and reliable energy. 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. 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,” said Maya Khonje-Stewart, Yellow Malawi co-founder.

RDG Collective, which provides renewable energy products across Africa, secured US$1.25 million to expand its solar home system distribution in Zambia. This investment will help 66,000 people gain energy access, mitigate 7,000 tCO2eq, and support 180 small businesses with solar generators. Structured as an Impact Indexed Loan, the interest rate decreases as impact milestones are met, reflecting the positive social and environmental outcomes achieved.

“We are proud to partner with Acumen for the first time as part of their innovative Hardest-to-Reach initiative. This investment will enable RDG to accelerate the distribution of thousands of solar home systems through our countrywide network, a significant milestone toward achieving universal energy access in Zambia,” Rune Gunnar Dige, CEO and founder of RDG Collective, said.

This investment is a testament to our commitment to sustainable energy solutions that empower and bring dignity to low-income communities and demonstrates the potential that innovative impact-linked finance instruments, such as impact-indexed loans, hold for climate solutions like decentralised renewables,” Sandra Halilovic, head of Acumen’s H2R development facility said.

Both investments reflect Acumen’s mission to support companies that create sustainable energy solutions for underserved populations across Africa.