| With a population of 19 million, Malawi has a low 10.8% electricity national access rate with approximately 50% access in urban areas and a minimal 3.9% access rate in rural areas. Malawi has set a targeted 30% grid access rate by 2030. Off-grid solutions will be needed to address the 70% access gap to achieve universal energy access over this period.
The USAID – Power Africa SHS kickstarter program is aimed to catalyze and stimulate the market in the short term over 3 years (2019-2021). The kickstarter program has 5 key components including:
1) A $1.5 Million Results Based Financing (RBF) Grant Facility aimed at stimulating the sale/provision of 150,000 new SHS off-grid connections
2) Access to working capital; debt and equity finance from various local financial institutions
3) Operation Support i.e. technical assistance to SHS companies
4) A Consumer Solar Awareness and Education Campaign
5) Policy and Regulatory Reform initiatives including strengthening fiscal incentives and support like VAT & Duty Exemptions