Yellow Malawi and Zambia’s RDG Collective Secure $3.25 Million for Off-Grid Solar Expansion
Off-grid solar companies, Yellow Malawi and Zambia’s RDG Collective, have secured a combined $3.25 million in debt financing from Acumen’s Hardest-to-Reach (H2R) initiative. The funding is aimed at expanding access to clean energy in underserved areas of Africa.
Yellow Malawi, a distributor of solar home systems and mobile phones to off-grid rural communities, received $2 million, while RDG Collective, a Zambian company that provides renewable energy products, secured $1.25 million.
The funding comes from H2R, a $250 million initiative that invests in off-grid solar companies working to provide energy access to unelectrified households in 16 of Africa’s most underserved regions.
The investment in Yellow Malawi will help the company purchase inventory for solar home systems, providing energy access to 182,000 people.
The first $1 million tranche will be disbursed in U.S. dollars, with repayments made in Malawian Kwacha. This structure, supported by a subsidy from the TCX EU Market Creation Facility to reduce hedging costs, makes the loan more attractive for both Yellow Malawi and Acumen.
The second $1 million tranche will be disbursed and repaid in U.S. dollars, minimizing foreign exchange risk for the company and supporting its sustainable growth.
“This partnership with Acumen allows us to reach more Malawians with clean, affordable, and reliable energy,” said Maya Khonje-Stewart, co-founder of Yellow Malawi.
“The innovative financing structure helps address critical risks and supports our mission to bring energy to those who need it most.”
Acumen’s H2R Development Facility head, Sandra Halilovic, praised Yellow Malawi’s alignment with H2R’s mission, noting that the loan would benefit thousands of Malawians in the coming years.
RDG Collective will use its $1.25 million investment to purchase solar home systems, benefiting 66,000 people and reducing at least 7,000 tons of CO2 emissions.
The funding will also support the acquisition of solar generators for 180 small businesses, offering a clean and resilient energy source.
The investment is structured as an Impact Indexed Loan, where the interest rate decreases as RDG reaches specific impact milestones, and includes an on-lending partnership with BioLite, one of RDG’s product manufacturers.
“We are excited to partner with Acumen’s Hardest-to-Reach initiative,” said Rune Gunnar Dige, CEO and founder of RDG Collective.
“This investment will accelerate the distribution of thousands of solar home systems through our nationwide network, marking a significant step toward achieving universal energy access in Zambia.”
Halilovic emphasized RDG Collective’s potential for growth and its commitment to providing high-quality solar solutions, noting that the investment demonstrates the potential of innovative financing tools, such as impact-indexed loans, for advancing climate solutions like decentralized renewable energy.
Source: Disrupt Africa
