In the past six years, Malawi has been hit by a series of devastating cyclones including Idai, Anna, Gombe, Freddy, Chido, and most recently, Jude. Each one left behind more than physical damage. Roads, bridges, farms, and homes were destroyed, and emotions were stretched thin. But what lingered the longest in many communities was how hard it became to access something as basic as clean water.
In TA Njema, Mulanje District, the pain was still raw from Cyclone Freddy-the worst cyclone to hit Malawi in living memory. We visited the area during our recovery work, and Beatrice Manyalo, secretary of the local water point committee, shared what she and others had gone through.
“Cyclone Freddy brought tragedy to our area,” she said. “A lot of people died. Many were injured. Families were crammed into overcrowded shelters.”
But for Beatrice and many others, it wasn’t just the loss of life and homes that shook them-it was the water. “The boreholes were washed away or completely submerged. People had no access to safe drinking water. Women had to walk longer distances through unsafe paths just to find water,” she explained.
The disruption went beyond water. Schools like Chimalira, Thundu, and Mitawa were either damaged or converted into evacuation shelters. “Our children stayed home for weeks, some even longer,” Beatrice told us.
After Cyclone Freddy, recovery wasn’t just about putting things back the way they were. With support from the Hilton Foundation, we began working with the community in TA Njema to do things differently-to actually build back better. We rehabilitated ten boreholes in flood-prone areas, this time making sure they were designed to survive future floods. But we also knew that even the best-built infrastructure could still be damaged. So we asked ourselves: what happens when another Freddy comes?
That question led us to what felt like a crazy - but in hindsight, obvious - idea: borehole insurance.
To our knowledge, it was the first time borehole insurance had been tried in Malawi. The idea was straightforward: if a borehole gets damaged during a flood or cyclone, the insurance would cover the cost of repairs, much like car or home insurance. It would mean communities wouldn’t have to wait for humanitarian aid or scramble for funds. The response could be faster, and more reliable.
To get this off the ground, with support from the Shockwave and Crap Foundations, we organized a key meeting on 6th May at the Mulanje District Water Office. It brought together community leaders, government officials, and two subsidiaries of NICO Holdings: NICO General Insurance and NICO Asset Managers. The purpose was to share the idea of borehole insurance and, hopefully, secure willingness to take things forward.
When we presented the idea, the reaction in the room was mixed. Some were curious, even excited. Others, like Mr. Edwin Mawindo, the Chair of the Area Development Committee, were more cautious.
“Projects come, and then they leave,” he said. “Will this borehole insurance survive once BASEflow is gone?”
Heads nodded across the room. It was a fair concern. We could only imagine how many well-meaning projects the communities had experienced that vanished the moment the funding ended.
But this time, the answer was different. Mirriam Mbewe from NICO Asset Managers explained how the insurance was not based on future donations. It was backed by an investment fund into which BASEflow had already made a significant deposit with NICO Asset Managers. That money would generate about 26% in annual returns, and that return would be used to pay the borehole insurance premiums with NICO General Insurance into perpetuity. Community members, who were already stretched thin recovering from previous disasters, wouldn’t have to pay a thing.
As people began to understand the model, the atmosphere in the room started to shift. The NICO teams walked everyone through how the insurance worked-how claims would be made, who to contact, and how quickly repairs could happen. As the private companies continued answering the growing number of questions, it became clear that the meeting was less about awareness-raising and more about giving the communities confidence that when the next emergency happened, they would not be on their own again.
Beatrice immediately understood the value. “This insurance will change everything,” she said. “We’ll have clean water even after a disaster. Repairs will happen quickly. It will prevent diseases like cholera and dysentery.”
She also pointed out what this meant for her daily life as a woman and mother. “We spend so much time walking to find water when boreholes are down. If repairs happen faster, that’s time we can use for school, business, or just resting. It’s a game-changer.”
District officials were equally engaged. Edwin Mchilikizo, the District Water Development Officer, said this was the first time he’d ever heard of borehole insurance. “I don’t think even water boards insure their infrastructure,” he said. “The only insurance I’ve heard about in development was crop insurance. But this is something new to me.”
He also saw the bigger picture. “It will ease the pressure on council budgets. If we’re not spending emergency funds on borehole repairs, we can focus on building new systems in places that don’t have any.”
For many in the room, it became clear that this was a different way of doing things-one where communities and governments are given the actual tools and resources to enable true resilience, with BASEflow simply playing the role of facilitator. The insurance will be tested
Flood-proofed boreholes and borehole insurance aren’t just technical solutions. They are practical steps in building community resilience by combining engineering with financial innovation to give flood-prone communities a real chance to recover-and move forward-after disasters.
And that, for us, is what true resilience really looks like: communities trusted and empowered with the resources to take charge of their own future.
While the model currently covers just ten boreholes in TA Njema, it is an intentional starting point. This pilot phase allows us to test the approach, build community trust, and fine-tune the operational details. Our hope is that, with the right support, this model can be scaled to other flood-prone areas across Malawi—and even beyond—offering a sustainable way to protect rural water systems from the growing risks of climate change.