MEGA: A commercial approach to off-grid power in rural Malawi

The case study presents the potential benefits of affordable energy services at the Base of the Pyramid (BoP), by focusing on MEGA, a social enterprise and the first operational private energy company in Malawi. MEGA’s inclusive business aims to provide the rural, off-grid villages of the Mount Mulanje area with access to affordable and available electricity and energy services. By analysing the commercial strategies used by MEGA, the study also explains some of the constraining factors encountered when seeking to achieve financial and operational sustainability.

Main findings

• As of July 2013, MEGA was still in its early stages of development. Electricity through micro-hydro power generation was provided to the local community free of charge.
• Local stores reported increased turnover due to longer opening hours, but MEGA faced a commercial sustainability challenge within the framework of its founding principles.

Intervention description

The intervention aims to develop a sustainable commercial strategy that is able to reach scale and provide efficient energy services through micro-hydro power generation. MEGA’s approach to off-grid power was motivated by the incapability of Malawi’s national grid to meet the country’s energy demands.

Evidence methodology

• The case is assessed through a combination of qualitative and quantitative research methods using primary and secondary data.
• Interviews with community members, local business and government officials were facilitated by the Business Innovation Facility (BIF) team in Malawi.
• Secondary data included BIF baseline reports and desk research to assess poverty and macroeconomic levels in area of study.

Useful for:

The MEGA project has the potential to induce systemic changes if successful. Energy provision within this framework could inspire similar social enterprises to replicate across the country.