Lumbani Enterprise
Lumbani Enterprise Project Summary:
Charcoal remains the primary fuel for cooking and heating in most Malawian households, with demand continuing to outpace the adoption of sustainable alternatives. As a result, charcoal consumption is expected to persist in the foreseeable future, posing a significant threat to forests and contributing to climate change.
Located in the heart of Mzuzu, Lumbani Enterprises is addressing this challenge by providing a sustainable alternative. Since 2020, the company has specialized in producing eco-friendly charcoal from rubber trees sourced from the Vizara plantation, promoting responsible energy use while reducing the environmental impact of traditional charcoal production.
Currently, Lumbani Enterprises collects between 35,000 and 40,000 cubic meters of firewood per month, with 10,000 to 20,000 cubic meters used to produce 7 metric tons of sustainable charcoal monthly. A poultry farm in Mzuzu purchases 80% of the charcoal, while the remainder is sold in Lilongwe.
With support from GETF financing, the company aims to scale up production to approximately 30 metric tons per month. This expansion will enable Lumbani Enterprises to reach 200 low-income households with sustainable energy solutions, increase aggregate income by 20% for 100 low-income households, and create 15 jobs, with 50% designated for women and youth.
As part of the GETF project, Lumbani Enterprises plans to:
Procure and install a modern electric kiln capable of producing 30 metric tons of sustainable charcoal per month.
Acquire additional equipment, such as wood-splitting machines, to improve efficiency and productivity.
Construct a new factory building.
Establish charcoal distribution points in Lilongwe and Mzuzu.
Through these initiatives, Lumbani Enterprises aims to sell 160 metric tons of sustainable charcoal and generate at least MK 100 million in revenue by the end of the project, contributing to a greener and more sustainable energy sector in Malawi.
Key Project Innovation: The Micro-Distribution Model to address the issue of Accessibility as one of the challenges set by the GETF.
Status of Project Implementation
Lumbani Enterprises was contracted under the GETF project on October 14, 2024. Between October and December 2024, the company’s focus was on the development of architectural designs and BOQs (Bills of Quantities), creating an ESG (Environmental, Social, and Governance) framework, and obtaining regulatory approvals. Additionally, they worked on gathering quotations for productive assets.
These deliverables are essential for the company to unlock the Milestone 1 reimbursement from UNDP.
a. Architectural Designs
Lumbani Enterprises contracted an architect to develop the designs and BOQs for the sustainable charcoal storage facility. These are expected to be completed by the first quarter of 2025. The company has also identified two locations for sustainable charcoal distribution: Luwinga in Mzuzu and Mtandile in Lilongwe.
b. Regulatory approvals
Due to delays in completing the architectural designs, the company has not yet submitted a request letter to Mzuzu City Council for approvals. Meanwhile, it was also advised by the GETF Project Manager to submit the existing Environmental and Social Management Plan (ESMP) to MEPA for approval.
c. Sourcing of Quotations
Lumbani Enterprises has yet to begin sourcing quotations from suppliers in China, as well as from neighbouring countries like South Africa and Zambia.
Project Milestones
The company is yet to complete Milestone 1, which is expected by the end of March 2025.