Access to Energy for the Base of the - Ashoka

Enhanced cookstove project in Tanzania
� 2007 Financials:
Project ability to solve the problem
� Market need: Energy entrepreneurs in Africa are
unable to access business development services or
capital. The AREED project is different from previous
aid efforts because it offers patient capital, not
donations, and helps entrepreneurs run successful
businesses. The returns are used to help more
enterprises
� Ability to serve the poorest: The enterprises
supported by AREED target poor customers
� Needs addressed: water pumping, water heating,
cooking, solar crop drying, biodiesel-powered
multifunction platforms, energy efficiency technology
� Impact:
� Served more than 30,000 customers per year
� Trained more than 500 entrepreneurs
� Provided enterprise development services to 100
entrepreneurs
Project economic viability Project scalability
� $4.3m dedicated to AREED
� 2% - 6% risk adjusted returns from 2000 to 2006
� Dependence on subsidies:
� AREED investors are the UNF, UNEP and are
accepting a less than market return
� Business models of investee enterprises do not
rely on subsidies
� Intention is for investees to attract other sources
of capital as AREED exits
� Ability to attract funding:
� AREED selected in 2005 as a potential beneficiary
of Domini Social Investments (DSI) special fund to
support selected projects
Sources: AREED reports; Hystra analysis
� Market environment: Favorable environment has
been found in other geographies where funds have
been set up (e.g., Brazil and China)
� Partners:
�� E+Co is a global partner
� Local partners have been found in several African
countries, China, and Brazil indicating strong
possibility of replication
� Funding:
★★✩
★★✩ ★★✩
� Requires ‘patient capital’ from social investors,
which exists, but not to the same extent as
commercial capital.
� Also requires extensive negotiation and due
diligence, which slows down funding process
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