Scaling Clean Energy Innovations in Sub-Saharan Africa: Perspectives from Leading Off-grid Solar Enterprises and Financiers

“To expand energy access and limit global warming, we urgently need to invest in pioneering enterprises that supply clean energy to the continent. To achieve the scale of funding [required], we need innovative financing vehicles that attract diverse investors and lenders with different risk appetites, return preferences, and timelines for investment. Structured finance provides one way to cater to these different preferences,” Lovemore Seveni, Off-grid Energy Specialist, Power Africa

WATCH: Accelerating Climate Investment in Africa: Using Structured Finance to Scale Clean Energy Innovation

Distributed renewable energy as a climate solution

What is structured finance?

  1. Based on predictable streams of cash flows from predetermined assets;
  2. Backed by assets that can be isolated and that are used to help repay the facility;
  3. Structured in a way that allocates risks to the entities that are best placed to manage them; and
  4. Designed in a way that is fit for purpose and minimizes the need for continuous fundraising.

Example 1: Using a borrowing base to scale up solar water pumping

Josephine — a farmer in Kirinyaga County, Kenya.
Josephine is a farmer in Kirinyaga County, Kenya. She purchased a SunCulture solar water pump using the company’s Pay-As-You-Grow financing option. Josephine can now farm more crops and has even added fish to her farm. Learn more about Josephine’s story. Photo Credit: SunCulture

Example 2: Reducing the effort required for fundraising through structured finance for mini-grids

What can we do together to scale these solutions?

Continuing the conversation

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A U.S. Government-led partnership that seeks to add 30,000 MW and 60 million electricity connections in sub-Saharan Africa by 2030 > https://bit.ly/2yPx3lJ

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Power Africa

Power Africa

A U.S. Government-led partnership that seeks to add 30,000 MW and 60 million electricity connections in sub-Saharan Africa by 2030 > https://bit.ly/2yPx3lJ

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