EXPANSION OF NNNF
The Ministry of Energy, with support from the World Bank, through the Malawi Electricity Access Project (MEAP) established the Ngwee Ngwee Ngwee Fund (NNNF) as a market development initiative to expand energy access in Malawi. Initially focused on off-grid solar energy, the fund has since been expanded to include clean cooking solutions. The NNNF supports Off-Grid Solar (OGS) companies through three key mechanisms:
- Working Capital Window – Enhances liquidity for OGS companies.
- Results-Based Financing Window – Incentivizes performance-based electrification.
Through this initiative, OGS companies sell and install subsidized Solar Home Systems (SHS) in low-income households. The goal for the first phase, from 2020 to 2025 was to electrifying at least 200,000 households, a target that was achieved by October 2024. The Fund is expected to reach 263,542 installations by June 2025.
The Fund was established to reduce energy poverty for households that are unable to connect to the national grid. A nationwide energy survey conducted by the National Statistical Office (NSO) indicated that electricity demand for most Malawian households falls within Tier 1 and Tier 2 of the Multi-Tier Framework. The SHS installed under NNNF can power low-load appliances, including light bulbs, radios, and small televisions. These systems therefore satisfies energy needs of most households in Malawi.
Recognizing the financial challenges of upfront costs, the NNNF ensures affordability by allowing households to purchase SHS either through a one-time upfront payment or flexible installment plans. The installment option enables users to access electricity immediately and make gradual payments based on their agreement with the OGS companies.
Under the ASCENT Malawi Project, the Ngwee Ngwee Ngwee Fund (NNNF) is expanding its scope to enhance energy access through off-grid electrification and clean cooking solutions.
A key focus is the electrification of 1,000 schools and 280 health centers currently without electricity. This will be achieved through both grid and off-grid solar connections, guided by the Integrated Energy Planning Tool (IEP) to ensure the least-cost electrification approach.
The Fund will expand access to Tier 4 and 5 modern energy cooking solutions, including electric, LPG, and pellet-based cookstoves. A dedicated clean cooking loan window under the NNNF will provide subsidized loans to SMEs supplying these technologies. In return, companies will transfer their carbon credits to the NNNF, which will aggregate and manage them for carbon finance transactions. The resulting revenue will subsidize loans, cover transaction costs, and support market expansion.
A carbon revenue-sharing model will help SMEs repay loans while reinvesting surplus funds into business growth. The revolving nature of the fund ensures long-term financial sustainability for continued government support in the clean cooking sector
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These financial resources are aimed at empowering OGS companies to deliver affordable solar energy solutions, with a target of reaching at least 200,000 new households across Malawi. By supporting the growth of off-grid energy options, the NNNF is helping to pave the way for a brighter and more sustainable future for millions of Malawians.
This fund represents a transformative step toward ensuring that reliable, clean, and accessible energy is within reach for households in underserved communities throughout Malawi.