lais lona business development africa - sunfunder · working capital, inventory loans, construction...
TRANSCRIPT
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Lais Lona Business Development Africa - SunFunder
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Financing the off-grid sector: An overview of sector growth, challenges,
and opportunities
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• Introduction: GOGLA & SunFunder? • Accelerating the growth of the off-grid solar market:
focus on finance • Q&A
Agenda
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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
.
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INDUSTRY
GOGLA’s members (May 2017)
ASSOCIATE
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SunFunder?
A leading financial intermediary in Beyond the Grid solar Industry
$40 million unlocked
Less than 1% default rate
2.7 million people impacted in 12 countries
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SunFunder raises debt capital by offering investors a range of products to invest in a diversified, vetted and high-impact portfolio of emerging market solar opportunities
SunFunder deploys debt capital by making inventory, structured finance and working capital loans to solar companies and projects in emerging markets
Impact Investors
Foundations
Donors
DFIs
SPVs Solar Notes
Funds
Working capital
Structured finance
Inventory loans
Pay-as-you-go home systems
Microgrids
C&I Solar
Distributors
Institutional & Commercial investors
Advisory services
Syndication
Business Model
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Solar lanterns Solar home systems
Commercial & Industrial Solar
Working capital, inventory loans, construction finance and project based finance
Structured finance / SPV models
Direct Finance / PPA models
Loan Types
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GOGLA‘s focus: Off-grid solar electrification solutions
Solar Lanterns
Solar Home Systems
Community & Street Lighting
High quality - Affordable - Scalable
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Snapshot of the market: July-December 2016 sales
3.77 million Products sold globally in H2 2016
27.2 million Cumulative product sales
since July 2010, 23.7 million of these being
quality verified
US$ 113.9 million Cash sales revenues in
H2 2016 (excluding PAYGO)
8.07 million Products sold in 2016
Sub-Saharan Africa: 1.87 million products sold Cash sales revenues: US$ 53.27 million East Africa: 1.49 million US$ 44.07 million West Africa: 330,561 US$ 8.06 million
85.5 million People with improved energy
access, currently
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Accelerating the growth of the off-grid solar market: focus on finance
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• 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:
• Through this combined approach, the market can grow to meet
demand in a sustainable way
How to accelerate growth in the off-grid sector?
Protecting consumers with sustainable quality
Facilitating access to finance
Creating an enabling environment
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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.
Off-grid solar financing needs
Manufacturing 1 month
Shipping / transportation 2–3 months
Customs <1 month
Cash
Delivery / sales 1 month
Paygo / leasing
Sales 1 month
Paygo Payment plan 12–36 months
Source: SunFunder
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Current status: rapid growth in investment since 2014
Extract taken from Off Grid Solar Market Trends Report 2016
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• 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
Looking ahead
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Thank you!
www.sunfunder.com or email [email protected]
For more information, please visit
www.gogla.org or email [email protected]
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