MI 2020 Solutions FINAL

SECTION 07
INNOVATIVE FINANCING
02
LEVERAGING
CROWD INVESTORS
TO DELIVER
AFFORDABLE SOLAR
ENERGY ACCESS FOR
FAMILIES IN SUB-
SAHARAN AFRICA
UK
TZ, KE, UG, MZ
CHALLENGE
Current levels of investment have
put Africa far behind schedule
in achieving the United Nations
Sustainable Development Goal
7 to deliver universal access to
affordable, reliable, sustainable
and modern energy by 2030.
Businesses installing solar home
systems are in urgent need of low
interest rates of working capital, in
order to provide rural families with
the low-cost financing plans they
need to afford these systems.
INNOVATION
Energise Africa uses fintech
to facilitate investments from
individual investors, as well as
more experienced investors,
in pioneering businesses that
install life-changing solar systems
in Sub-Saharan Africa homes.
This platform allows businesses
to extend ‘pay-as-you-go’ credit
to low income households,
so they can afford to pay for
solar energy systems in small
instalments over time.
The innovation lies in applying
lessons from the growth of
alternative finance in Europe
to the needs of early stage
businesses in the energy access
sector and matching these with
the evolving needs of investors
who want to generate a social,
environmental and financial
return with their money. The
web-based operation enables
Lendahand Ethex (the two partner
organisations behind Energise
Africa) to contain overheads whilst
rapidly scaling, which translates
into lower costs to the borrower
and attractive rates for lenders.
ACTION
Since the launch of Energise
Africa in August 2017, it has raised
£3.4 million from 650 investors,
providing investment to enable
25,000 families and 125,000
people to access affordable
clean energy in Kenya, Uganda,
Mozambique and Tanzania.
By crowdfunding investments from
UK-based retail impact investors at
scale, Energise Africa is helping to
enable solar companies on the ground in
Africa to grow and expand their scope,
providing a long-term, sustainable way
of improving clean energy access.
POTENTIAL
Energise Africa is an evolving initiative
which would benefit from further match
funding, first loss cover and electronic
vouchers to continue to lower the
©Lendahand Ethex
perceived risk to individual investors
considering investing in Africa. Energise
Africa is also looking to build further
awareness amongst a younger and more
diverse investor base of the important
role impact investing plays in supporting
renewable energy access.
USEFUL LINKS:
Further information: lendahand.co.uk
Energise Africa video: youtu.be/
WRXUoUo-Xzk
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