Clean Cooking Loans In Malawi
The Problem
Lack of access to clean cooking options is a big problem in Malawi and other low- and middle-income countries. More than 2 billion people worldwide use wood or charcoal for heating and cooking. In sub-Saharan Africa, nearly nine hundred million people, over 70% of the population, rely on wood or charcoal.
The use of wood-based fuel has significant negative impacts on the family’s health and the environment. Traditional cooking methods also are deeply intertwined with gender inequality and gender-based violence. They require a significant expenditure of time and effort from women responsible for cooking and fuel collection. Collecting fuel in remote areas also leaves women vulnerable to violence.
FINCA Malawi Provides a Path Forward
To address the significant health, environmental and social impacts of traditional cooking methods, FINCA Malawi has created a Clean Cooking Initiative. The program provides access to energy-efficient cooking solutions through an innovative financial product, the Clean Energy Loan. Developed in partnership with a local stove manufacturer and supported by the Spark+ Africa Fund, the initiative will benefit up to 10,500 clients over the next three years.
The initiative allows clients to purchase energy-efficient stoves and solar-powered appliances at accessible rates. The process is straightforward:
- Clients receive a quote for their chosen product.
- They then apply for a loan through FINCA Malawi, with loan amounts tailored to cover the cost of these products.
- Upon approval, FINCA pays the supplier directly, ensuring clients can either collect their product or have it delivered.
By reducing household air pollution, the energy-efficient stoves lower the risk of respiratory illnesses, particularly for women and children who are most affected. The initiative also reduces demand for firewood and charcoal, contributing to the preservation of forests and a reduction in greenhouse gas emissions. Finally, many women are spared the need to gather fuel, freeing up time for education, work or other productive activities.
By leveraging microfinance to increase accessibility to clean energy products, FINCA Malawi is directly addressing the challenges posed by traditional cooking methods while supporting sustainable development and environmental conservation.
Clean Cooking in Malawi: Hellen Mwale’s Story
For Hellen Getrude Mwale, a seasoned businesswoman in Nkhata-Bay, traditional cooking methods were holding her back. Running a small grocery store and managing rental accommodations required her constant attention. Reliance on charcoal for daily cooking made her life more challenging.
“Using charcoal was costly and messy. It took a lot of time and made it difficult to manage my business,” Hellen explains. Beyond the inconvenience, the health risks weighed heavily on her mind. “I was always worried about smoke and carbon emissions causing respiratory and heart problems.”
Through FINCA Malawi’s Clean Energy Loan, Hellen purchased a 4-plate hybrid gas cooker—a change that has transformed her daily routine. “Gas cooking is clean, fast, and low-cost. It has made my life easier and allows me to focus on my business while preserving the environment.”
The loan process was seamless and efficient. “The application process was simple, and FINCA treated my loan with great care since it was the first clean energy loan in Nkhata-Bay,” she says. While delivery required coordination due to the supplier’s location 60 kilometers away, the benefits of the new cooker far outweighed the wait.
Hellen encourages others to take advantage of FINCA Malawi’s financing options: “FINCA loans are easy to access and process quickly—mine took just five days.”
Hellen’s story is a testament to how clean energy solutions, supported by accessible financing, can empower individuals to improve their lives and their communities.
This article first appeared on finca.org