Malawi’s small and medium enterprises (SMEs) can withstand climate-related shocks if renewable and efficient energy technologies are made affordable and accessible, a new study has found.
The study titled ‘Modelling and estimating the climate resilience for renewable efficient energy systems among small and medium-sized enterprises in Malawi’, was conducted by Malawian researchers Victor Limbe, Sydney Nkhoma, Mwayi Mambosasa, Joseph Mahuka and Steven Dunga.
It found that businesses that adopt renewable energy systems such as solar, biogas and energy-efficient technologies are more resilient to climate-related disruptions than firms that do not use the technologies.
Lead researcher Limbe said renewable and efficient energy can strengthen business resilience, but adoption depends on access to finance, information, education, markets and institutional support.
“Renewable efficient energy systems improve the resilience of SMEs, but adoption is not automatic. It depends on access to credit, education, assets, information and support systems,” he said.
Reacting to the findings, Nsanje-based agro-dealer Lesson Masiano said the research accurately reflects the challenges SMEs face.
“The findings reflect the reality many of us face as business owners,” he said.
The study has recommend targeted concessional loans, grants, technical assistance, improved access to information, extension services and stronger market linkages to make clean energy adoption affordable.
