Lighting Up Malawi: Electricity Access for Nearly Two Million People Sparks Entrepreneurship and Opportunity

Development Challenge

In 2019, Malawi had one of the world's lowest electrification rates at just 11 percent, with stark disparities between urban areas (42 percent) and rural communities (4 percent). Most of the population relied on candles, kerosene, and firewood for lighting and cooking. High connection costs, limited grid infrastructure, and the financial constraints of the national utility made expanding access a formidable challenge, particularly for the country's predominantly rural and low-income population.

WBG Approach

Working with the Electricity Supply Corporation of Malawi and the Ministry of Energy, the World Bank Group adopted a two-pronged strategy that combined grid densification with market-based off-grid solutions. Rather than building costly new transmission lines, the project focused on connecting households already located near existing infrastructure through low-voltage extensions, service drops, and prepaid meters. To address affordability, the project financed "ready boards" for homes that could not afford internal wiring. For remote communities beyond the grid's reach, the project established the Off-Grid Market Development Fund, which provided working-capital loans and results-based financing to private solar companies. This incentivized the sale and installation of quality-certified solar home systems at scale. The project also invested in institutional strengthening, including a national geospatial electrification planning platform and targeted programs to increase women's participation in the energy workforce.

Results and Outcomes

• Nearly two million people gained access to electricity, exceeding the target of 1.6 million by more than 20 percent.
• Over 190,000 households were connected to the national grid through low-cost densification solutions, reaching communities in peri-urban and rural areas.
• Nearly 257,000 solar home systems were installed by private-sector providers in off-grid areas, surpassing the target of 200,000 by nearly 30 percent.
• 41 percent of off-grid systems and 24 percent of grid connections went to female-headed households, overall exceeding the 30 percent target.
• The share of female technical and engineering staff at the national utility increased from 10 to 19 percent.

Contribution to WBG Targets and Jobs

Electricity access has enabled small-scale economic activity-including retail shops, phone-charging businesses, and food processing-creating new job opportunities, particularly for women in newly connected communities.

The project directly contributes to Mission 300 -led by the World Bank Group and African Development Bank -which aims to connect 300 million people in Africa to energy by 2030 - by connecting nearly two million people to electricity in one of the world's least-electrified countries.

Bertha Macheso from Munyapa village in Chiradzulu District has waited a few years for electricity. Now her house is connected to the national grid, through the Malawi Electricity Access project, MEAP, financed by the World Bank Group. She shared "I would like to build a small shop to run a small business including a grocery, barbershop and phone charging facilities which will help me generate money and support my kids."

Lessons Learned

Two key lessons emerged. First, project ambitions must be aligned with practical realities on the ground. Initial targets exceeded the national utility's procurement and contract management readiness, causing early delays. A timely restructuring-which reduced financing and revised targets-helped realign the project with the implementing agency's capacity. Second, private-sector-led, off-grid delivery can achieve remarkable scale when supported by the right institutional arrangements. The Off-Grid Market Development Fund, combining working-capital loans with results-based incentives far exceeded its targets and demonstrated a replicable model for expanding energy access in low-income settings.

Next Steps

The World Bank Group continues to support Malawi's electrification agenda through the follow-on Accelerating Sustainable and Clean Energy Access Transformation in Malawi Project (ASCENT Malawi), which focuses on expanding energy generation and regional integration to sustain the increased demand from new connections. Ensuring long-term sustainability will require strengthening the financial viability of the national utility so it can operate and maintain the new distribution assets. For off-grid systems, continued private-sector participation and adequate after-sales service arrangements will be essential to protect the gains achieved under this project.