AFRICAN ENERGY
records — and hence, default rates — will become
known to other funders who should be able to lend to
more off-grid energy suppliers on a portfolio basis.
“This will rapidly increase the acquisition of this energy
technology in Africa, placing affordable at-home off-grid
power generating capacity in individuals’ hands,” says
Lovell. Since various sources of research confirm a
positive correlation between energy use and economic
growth, off-grid solutions are expected to have a
measurable positive impact on the broader economy.
The improved affordability of the technology, with most solar
units being the size of an A4 piece of paper, has resulted in
businesses like M-Kopa no longer having to rely solely on
equity funding like other start-ups. Instead, the affordability
of the product, along with the scale of take up, means that
M-Kopa has been able to expand its funding sources to include
substantial commercial bank finance. “For Stanbic Bank,
supporting M-Kopa in raising their single-largest debt funding
ever, entirely against their own balance sheet, was a landmark
transaction in a new and rapidly changing sector,” says Lovell.
By helping M-Kopa evolve and grow their funding to
include significant commercial bank lending, “Stanbic
Bank proved a critical enabler in bringing innovative
financing to an industry crucial for economic growth in
Africa,” adds Lovell. PA
19
Since a large
portion of
Africa’s population
lives in remote
and rural areas,
receiving power
from the grid
could still be
decades away.
Africa Energy Indaba announces
strategic partnership
The Africa Energy Indaba has announced a strategic partnership
with the South African Electrotechnical Export Council (SAEEC).
By Africa Energy Indaba
The purpose of the partnership is to grow and
develop the African energy sector with the SAEEC
member companies. “We are delighted to partner
with the Africa Energy Indaba, an event that is
produced by Africans for the benefit of the African
energy sector,” said Chiboni Evans, CEO of the SAEEC.
The SAEEC is a public-private partnership between
South African business and the Department of Trade and
Industry (dti), established to facilitate the export growth
and internationalisation of its members. The partnership
creates an opportunity for the SAEEC to be recognised
as the Trade Association Partner of the Africa Energy
Indaba 2018 (AEI 2018).
The AEI is supported at a strategic level by the World
Energy Council (WEC) and this event constitutes the
annual WEC Africa Forum. In its 10th year of operation,
AEI 2018 is the meeting place for African energy
ministers and other energy sector leaders and experts
www.plumbingafrica.co.za
from the African continent. “The value for our member
companies participating at this 10th edition of AEI is
measurable, and the aim is to link SAEEC members
companies such as ABB, Powertech, and Actom to other
African businesses, projects, or utilities attending the
event to conduct business in the energy sector,”
added Evans.
At AEI 2018, the SAEEC will profile companies drawn
from its membership base representing South African
companies that are highly regarded as solution providers
for power and telecommunications infrastructure projects
in Africa. As part of the Trade Association Partnership,
the SAEEC is proud to announce that, with the support
of the dti, they will also be hosting high-level delegates
from various African countries, including Zambia, Kenya,
Sudan, Mozambique, and Tanzania at AEI 2018. “We
believe the Africa Energy Indaba 2018 will be a conduit
for the dti mandated, investment-led export drive into the
African continent,” concluded Evans. PA
We are delighted
to partner with
the Africa Energy
Indaba, an event
that is produced
by Africans for the
benefit of the African
energy sector.
February 2018 Volume 23 I Number 12