Off-grid solar companies Yellow Malawi and Zambia’s RDG Collective have secured a combined US$3.25 million in debt investment through Acumen’s Hardest-to-Reach (H2R) initiative, a program designed to activate clean energy markets in some of Africa’s most underserved regions.
Yellow Malawi, a distributor of solar home systems and mobile phones, received US$2 million in funding. This capital injection will allow the company to purchase more solar home systems, expanding energy access to over 182,000 rural Malawians. The funding structure is innovative, with the first tranche of US$1 million disbursed in US dollars but repaid in Malawian Kwacha.
Hence, by reducing FX risks through this multi-currency arrangement, supported by a TCX EU Market Creation Facility subsidy, Yellow Malawi is positioned to grow its customer base sustainably.
Furthermore, Maya Khonje-Stewart, co-founder of Yellow Malawi, emphasized how pivotal this funding is for their mission. “This partnership with Acumen allows us to reach even more Malawians who deserve access to clean, affordable, and reliable energy. The innovative financial structure addresses critical risks and enables us to scale faster,” she said.
Zambia’s RDG Collective, which facilitates access to renewable energy products, secured US$1.25 million. This funding will provide 66,000 people with solar home systems and power 180 small businesses with solar generators. The structure of RDG’s investment, an Impact Indexed Loan, reduces interest rates as the company reaches specific social and environmental milestones, rewarding the company for making progress on impact-driven goals.
“We are proud to partner with Acumen for the first time under the Hardest-to-Reach initiative. This investment will enable us to distribute solar home systems more efficiently across Zambia, a key step towards universal energy access,” said Rune Gunnar Dige, CEO and founder of RDG Collective.
Sandra Halilovic, head of Acumen’s H2R development facility, remarked on the alignment between Yellow Malawi, RDG Collective, and the initiative’s goal of providing clean energy to hard-to-reach populations. “These partnerships are critical to scaling energy access significantly across Africa, and we are excited to see the long-term benefits of these investments,” she added.
Acumen’s Hardest-to-Reach initiative, a US$250 million fund, is driving clean energy adoption in some of Africa’s most underserved areas, using tailored financial instruments to invest in companies like Yellow and RDG that are making transformative impacts in their communities.
