AGA-managed Malawi Off-Grid Market Development Fund launched in Lilongwe by H.E. Minister of Energy Ibrahim Matola
The $20 million Malawi Off-Grid Market Development Fund / Ngwee Ngwee Ngwee Fund (NNNF) was launched in Lilongwe on Friday, 10 March by H.E. Minister of Energy Ibrahim Matola. Africa Grant Advisors and its partner in the fund management consortium, IDCOL (Infrastructure Development Company Limited) presented the fund to attendees and engaged with representatives from the private sector and the Ministry of Energy. The fund, with $20 million of capital from the World Bank, will finance private off-grid solar companies in Malawi through three distinct instruments: inventory finance loans, results-based finance reimbursements, and market catalytic grants.
The fund will enable Malawian companies to bring renewable, affordable power to 200,000 rural households in Malawi by 2024. The fund will accelerate the growth of the Malawian off-grid solar market and lay the groundwork for the continued success of a dynamic sector. Launched amidst a challenging macro environment, this small step is set to make a big impact in the country where less than 15% of the population is connected to the power grid.
Africa Grant Advisors (AGA) is Africa’s leading business development and project management consultancy, operating from offices in Nairobi, Dar es Salaam, Lilongwe, and Mauritius. AGA supports public, private, and civil society organizations across Africa to plan, finance, and implement effective and impactful development projects. AGA has raised and managed over $370 million of funding for clients including leading development institutions, Fortune 500 companies, private foundations, and the continent’s leading startups and innovators.
IDCOL (Infrastructure Development Company Ltd) is a Bangladeshi public financial institution dedicated to promoting and financing, renewable energy, energy efficiency, and PPP projects in Asia and Africa. IDCOL provides a wide range of financing products and fee-based services with project advisory, financial advisory, fund management, government advisory, climate consulting, policy advisory, and transaction advisory as its focus areas. Its financing products include long-term loans in local and foreign currency, mezzanine financing, grants, and other instruments.
The Malawi Ministry of Energy creates sustainable development in Malawi through the utilization of energy resources for socio-economic growth and development. The Ministry provides overall leadership in matters of downstream energy activities, oversees reforms in the energy sector, ensures the policy implementation targets are achieved within the time frames indicated, and mobilizes resources to bring power (grid extension, mini-grids, or RE) to rural areas in Malawi.
For more information on the NNNF, visit: https://www.energy.gov.mw/