Abstract

The paper evaluates the influence of non-financial factors on the financial sustainability of micro hydro plants (MHPs) in Malawi. It uses case study methodology conducted through interviews triangulated with archival data. The findings suggest the significant role played by non-financial factors on determining the quantity of financing and on long-term financial sustainability for MHPs. This may imply that the difficulties to design suitable sustainable financing models for MHPs may to some extent be attributable to non-financial factors. Therefore when deciding on the appropriate financial measures to address the problem of financial sustainability and in developing financing models of MHPs, consideration should be given to the underlying non-financial factors.

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