Firm in renewable energy matching grants
Private Financing Advisory Network (Pfan) says it is offering firms in renewable clean energy an opportunity to partner financiers of their bankable projects.
The firms have an opportunity for an investment of up to $50 million (about K40 billion) which for micro-projects, they are required to request funding of not less than $1 million (about K800 million).
In a statement, Pfan Malawi country coordinator Violette Santhe said as a part of its mission to bridge the gap between entrepreneurs and investors, the firm provides free business coaching and investment facilitation to entrepreneurs and presents the investment-ready projects to potential financiers.
She said: “To be eligible for Pfan support, the project or businesses are required to provide climate change adaptation benefits, or offer or use clean energy technologies, products or services.
“Selected Pfan projects undergo intensive one-on-one coaching to perfect their business plans, financial structures and investment pitches.
“Once investment-ready, projects may be invited to present at Pfan and partner events, or receive tailored investment facilitation services.”
The investment capital opportunity in the energy sector comes as the World Bank estimated that Malawi is currently facing an annual investment gap of $332 million (about K255 billion) in the energy, water supply and sanitation sectors, calling. The bank has since called for reforms aimed at closing such a gap.
Ironically, Malawi has one of the lowest electricity access rates at 18 percent, with 12 percent from the national grid and six percent from mini off grids, compared to 42 percent in low-income countries and 48 percent in sub-Saharan Africa, according to World Bank data.
Renewable Energy Industries Association of Malawi (Reiama) president Andrew Nkoloma welcomed the Pfan, observing that players on the local scene lack investment capital.
He said: “All renewable energy equipment is imported, we are in the receiving end and the choice of products is limited unlike when one gets the equipment directly from source.”
As a remedy, Nkoloma said they are coming up with the Reiama Renewable Energy Warehousing Facility, where as an association, they will be importing renewable energy equipment in bulk and sell locally at reasonable prices for majority of Malawians to afford, thereby increasing energy uptake.
Ministry of Energy deputy director responsible for alternative energy Joseph Kalowekamo, recently said it was imperative that State-owned enterprises in the energy sector, especially Electricity Supply Corporation of Malawi, improve financial performance.
