Dominovas Energy Corp. (fka DNRG)

[Alinea818]

USAID’s Development Credit Authority will provide $75 million in loan guarantees to fund the scale up of off-grid energy investments in sub-Saharan Africa


https://www.devex.com/news/off-grid-solar-power-is-gathering-steam-in-africa-what-s-next-87149


So what’s the problem?

It’s not growth. There is money out there from investors, especially for the frontrunners who have shown they can deliver returns, but what’s been lagging is working capital. For companies that rely on cash sales and are selling devices to retailers it’s a critical component to operating and growing business.

Companies have told Sturm they expect they could continue on the path they were on a year ago with 100 percent year-on-year growth if they had working capital.

IFC is working to help leverage additional financing, in part through its $10 million investment in ResponsAbility’s Energy Access working capital debt fund. The World Bank Group member would like to invest more in this area, according to Sturm, and is interested in working with local banks to create new types of financing to support customers who want to buy these products.

Government regulations can have a big impact on market growth. Countries that are not corrupt, have supportive business environments, don’t have a high kerosene subsidy, generally have low tariffs and import fees, and decent infrastructure will be the most appealing. Working with countries to change bad policies and encourage favorable ones will help future industry growth.

And while innovation may happen at a slower place, there’s plenty of room for more — particularly in products and appliances like low-watt televisions and fans that consumers are demanding.

Because as people gain access to electricity they tend to want to move up the energy access ladder pretty quickly. So making that affordable, and providing the finance and the business models to make it happen, will be important.