Affordable solar-powered irrigation for smallholder farmers to increase crop yields year-round
The Solar Irrigation Systems project aims to provide affordable, sustainable irrigation solutions to smallholder farmers in Malawi. By harnessing solar energy, we eliminate the need for costly diesel pumps and unreliable rainfall, enabling farmers to grow crops year-round and significantly increase their yields.
Solar-powered irrigation system demonstration in Lilongwe district
Successfully installed 20 systems with participating farmers, achieving 150% yield increases.
Began raising $50,000 to scale to 100 additional farms (currently 65% funded).
Install systems for 100 new farmers across Lilongwe and Kasungu districts.
Scale to additional 200 farms based on successful repayment rates.
Agricultural engineer with 8 years experience in Malawi
Solar technology specialist
Local farmer network liaison
| Investment Type | Revenue Participation Note |
|---|---|
| Minimum Investment | $500 |
| Target Return | 14% IRR |
| Term | 3 years |
| Payments | Quarterly, starting Q1 2024 |
| Security | First charge on project assets |
Investors will purchase Revenue Participation Notes in Solar Irrigation Malawi Ltd. These notes entitle holders to a percentage share of the project's revenue from system lease payments.
70% of farmer lease payments will be distributed to note holders quarterly, after deducting operational costs (estimated at 15% of revenue). The remaining 30% will be retained for maintenance and expansion.
Farmers make monthly lease payments over 36 months. Investors receive aggregated payments quarterly. Early repayments from farmers will result in accelerated distributions.
Primary risks include farmer default (mitigated by staggered deployment and community guarantee system), equipment failure (covered by warranty for 5 years), and currency fluctuation (payments are USD-denominated).
At maturity, investors may elect to: (a) receive principal repayment, (b) roll over into new deployment phase, or (c) convert to equity in the operating company.
We're excited to share that the first 10 systems of our expansion phase have been successfully installed with farmers in the Lilongwe West district. Early feedback has been extremely positive, with farmers reporting easier irrigation and more time for other activities.
Thanks to our wonderful investors, we've reached 50% of our funding target! This allows us to begin the first phase of deployments while we continue fundraising for the full 100-system rollout.
We've completed training for 15 local technicians who will provide maintenance and support for the solar irrigation systems. This creates local jobs while ensuring quick response times for any technical issues.
The pilot farmers were selected through a partnership with local agricultural cooperatives. Criteria included: (1) existing farming activity, (2) access to groundwater, (3) willingness to participate in training, and (4) diversity of crop types. The selection aimed to create a representative sample of smallholder farmers in the region.
Answered by Grace Banda - June 12, 2023Our system includes several safeguards: (1) Payments are aligned with harvest cycles, (2) We establish community guarantee groups where neighbors support each other, (3) After 3 months of non-payment, we may reallocate the system to another farmer while working with the original farmer on alternative arrangements. In our pilot, we had a 92% repayment rate.
Answered by Wezi Moyo - June 8, 2023The systems are designed with battery storage that can provide 3 days of autonomy during cloudy periods. During the rainy season when irrigation needs are lower, the systems typically maintain full charge. Our pilot systems operated through two rainy seasons without issues.
Answered by James Phiri - June 5, 2023After a 12-month lock-up period, investors may list their notes on our platform's secondary marketplace. While liquidity isn't guaranteed, similar instruments on our platform have seen trading at 90-110% of face value depending on project performance.
Answered by Kwanga Investments Team - May 28, 2023All investments and distributions are denominated in US Dollars. For Malawian investors, distributions will be converted to MWK at prevailing bank rates at time of distribution.
Answered by Kwanga Investments Team - May 22, 2023Have a question that hasn't been answered? Our team typically responds within 1-2 business days.