Lais Lona Business Development Africa - SunFunder

Transcription

1 Lais Lona Business Development Africa - SunFunder

2 Financing the off-grid sector: An overview of sector growth, challenges, and opportunities

3 Agenda Introduction: GOGLA & SunFunder? Accelerating the growth of the off-grid solar market: focus on finance Q&A

4 What is GOGLA? Neutral, independent, not-for-profit advocate for the emerging off-grid lighting and household electrification industry. Promoting energy access solutions that benefit society and businesses in developing and emerging country markets. 90+ GOGLA members - mostly manufacturers & distributors - attracting >USD 500 million of investments.

5 GOGLA s members (May 2017) INDUSTRY ASSOCIATE

6 SunFunder? A leading financial intermediary in Beyond the Grid solar Industry $40 million unlocked 2.7 million people impacted in 12 countries Less than 1% default rate

7 Business Model Foundations Institutional & Commercial investors Impact Investors Solar Notes SPVs DFIs Advisory Funds services Donors SunFunder deploys debt capital by making inventory, structured finance and working capital loans to solar companies and projects in emerging markets SunFunder raises debt capital by offering investors a range of products to invest in a diversified, vetted and high-impact portfolio of emerging market solar opportunities Working capital Structured finance Microgrids Inventory C&I Solar Syndication loans Distributors Pay-as-you-go home systems

8 Loan Types Solar lanterns Solar home systems Commercial & Industrial Solar Direct Finance / PPA models Structured finance / SPV models Working capital, inventory loans, construction finance and project based finance

9 GOGLA s focus: Off-grid solar electrification solutions Solar Lanterns Solar Home Systems Community & Street Lighting High quality - Affordable - Scalable

10 Snapshot of the market: July-December 2016 sales 8.07 million Products sold in 2016 Sub-Saharan Africa: 1.87 million products sold Cash sales revenues: US$ million East Africa: 1.49 million US$ million West Africa: 330,561 US$ 8.06 million 3.77 million Products sold globally in H US$ million Cash sales revenues in H (excluding PAYGO) 27.2 million Cumulative product sales since July 2010, 23.7 million of these being 85.5 million quality verified People with improved energy access, currently

11 Accelerating the growth of the off-grid solar market: focus on finance

12 How to accelerate growth in the off-grid sector? Despite the rapid growth of the sector, there is still huge unmet demand just 700,000 solar home systems installed in East Africa to date GOGLA works to strengthen and scale the off-grid solar market through three interlinked pillars, addressing key enablers for growth: Creating an enabling environment Protecting consumers with sustainable quality Facilitating access to finance Through this combined approach, the market can grow to meet demand in a sustainable way

13 Off-grid solar financing needs A typical solar company will have financing needs at every stage of the value chain. This will take different forms e.g. inventory finance, working capital, receivables financing, etc. Delivery / sales 1 month Cash Paygo / leasing Manufacturing 1 month Shipping / transportation 2 3 months Customs <1 month Paygo Sales 1 month Payment plan months Source: SunFunder

14 Current status: rapid growth in investment since 2014 Extract taken from Off Grid Solar Market Trends Report 2016

15 Looking ahead Off-grid companies are at various stages of the spectrum New market entrants finding it difficult to raise equity Industry starting to collaborate to harmonize financial performance reporting Local and commercial banks tentatively engaging with the sector in select markets Several major working capital facilities to come online by 2018 Grants Angel investors, friends and family Series A, Series B equity Grants for expansion, R&D Debt secured by inventory or receivables Local currency debt, incl. from commercial banks Securitization of receivables through SPVs

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