The Renewable Energy Industry Association of Malawi (REIAMA) has identified limited interest from local banks in financing renewable energy projects as a major challenge facing the sector.

For years, Malawi has struggled with electricity shortages, failing to meet national energy demand. This has underscored the urgent need to diversify the energy mix, with renewable energy emerging as a reliable, environmentally friendly, and cost-effective complement to the national grid.

Despite this potential, REIAMA President Brave Mhone noted that the sector continues to face significant financial hurdles. He attributed this to a lack of awareness among banks about the renewable energy industry, which hinders the development of suitable financial products tailored to the sector’s needs.

In response, REIAMA has partnered with NBS Bank to explore solutions to these challenges.

“Our coming together will allow us to discuss key issues affecting the sector so that NBS can develop financial products that address the sector’s specific needs,” Mhone said.

Speaking on behalf of NBS Bank, Head of Government Business and International Organizations, Melvin Donga, reaffirmed the bank’s commitment to supporting the renewable energy agenda.

“We recognize the need to grow market demand by educating the public on the benefits of renewable energy. This will play a key role in developing the industry,” Donga said.

The newly signed partnership between NBS Bank and REIAMA marks a critical step toward developing innovative financing solutions aimed at accelerating renewable energy investment in Malawi.

(Written By: Winnie Luwembe)