solar energy firms get loans to light up rural tanzania - solar energy traffic lights

by:Litel Technology     2019-08-11
solar energy firms get loans to light up rural tanzania  -  solar energy traffic lights
Thomson Reuters Foundation)-
Eight years ago, when Arti Energy in Tanzania brought solar lights to Kilomo village in eastern Bagamo, the locals were excited, but found them expensive.
"I really liked the lights, but I couldn't imagine I would have one then," recalls Salum Ali, a resident of Kilomo.
The company realized that the upfront investment needed to buy modern lighting equipment exceeded the average level in rural Tanzania.
Dar es Salaam believes that lighting is the basic requirement of human beings-
The company headquartered in Sustainable Energy decided to sell the lights on credit.
Within a few months after the introduction of the traditional credit system, Mali Kauli, the company sold many lighting devices and home solar systems in poor areas, enabling customers to buy products and pay later fees. Ali -
He used a solar lamp he bought a few years ago. -
They say they still work very well.
"I have nothing to complain about. -
I use lights at home and in fishing activities, "48"-year-
Always tell Thomson Reuters Foundation.
Initiative, part of the World Bank-
Rural lighting projects in Tanzania, implemented jointly by Arti Energy and the Rural Energy Agency, have attracted many distributors and shopkeepers who are keen to sell solar products on behalf of their companies.
Benefiting from an informal credit system-
Because of the trust between customers and shopkeepers and the interdependence between sellers and suppliers, it is widely used in rural areas. -
Ati Energy Co. offers a low price-
More than 6,000 households in Bagamo need solar energy equipment.
According to the Tanzanian Bureau of Statistics, only a quarter of Tanzanians have access to electricity.
Although electricity demand is growing at a rate of 10% to 15% a year, the government says rural households are often excluded from economic activities because of insufficient electricity.
Although solar energy is a promising way to boost electricity supply in rural areas, companies supplying solar products find it difficult to achieve growth due to lack of funds.
Lais Lona, Africa Business Development Manager at Sunfund, a solar finance company based in Tanzania and the United States, says banks are usually reluctant to lend to banks without knowing how the sector works.
Its goal is to bridge the gap between investors and businesses specializing in non-financial businesses. -
Solar energy is provided through loans.
"If it weren't Sunfunder, we would still order small quantities of inventory and pay a premium for transportation and customs clearance," said Dennis Tessier, project director at Arti Energy, which received a Sunfunder loan. “(It)
"This enables us to transfer more transactions and transfer the savings to our customers," he said.
Lona said Sunfund has established a mechanism through which solar investors can borrow from solar companies, thanks to Sunfund's expertise in the industry.
"We closely review individual solar companies and develop an understanding of the broader business context," he said.
Sunfund loans are tailored to meet the needs of specific business models to minimize default risk.
Lona said that instead of lending to individual companies, investors invested in solar-powered lending instruments, each of which lent to a number of companies, diverting risk.
Sunfunder won the Ashton Innovative Finance Award in 2016 last month and has so far granted about 70 loans worth $8.
Lonner says there are 6 million to more than 20 solar companies in 10 countries.
Each loan can range from $50,000 to $1 million or more.
Companies usually start shipping a batch of products from a few months of microfinance, and then increase to a larger, longer scale. -
A fixed-term loan that serves as a successful repayment.
"We are proud of our ability to work quickly with our customers and our openness and flexibility in designing financing solutions that meet their needs," Lonner said.
The company says more than 300,000 households have received subsidies for solar technology.
These families now have a clean energy source, making daily activities easier, saving kerosene for lighting and charges for mobile phones.
Eliminating kerosene use reduces the risk of fire and health damage caused by indoor pollution.
In addition, Sunfund's financial support reduces carbon dioxide emissions by about 50,000 tons per year, the company said.
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