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News
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SARAH MALM OF GOGLA DISCUSSES KEY INSIGHTS FROM AFRICAN ENERGY SUMMIT
By Eamonn Ryan
Cape Town-based Sarah Malm , executive director of GOGLA ( the Global Association for the Off-Grid Solar Energy Industry ) in January attended the Mission 300 Africa Energy Summit in Dar es Salaam , whereafter she shared her insights with RACA Journal on the off-grid solar industry ’ s potential in expanding energy access across Africa .
This has major implications for the growth of Africa ’ s cold chain infrastructure . GOGLA , which represents over 200 companies and investors in the off-grid solar sector , is focused on achieving the ambitious goal of providing energy access to 300 million people by 2030 .
Malm highlights off-grid solar as a crucial component of reaching this target , estimating that it could contribute up to 45 % of the goal . She emphasises the importance of financing and local currency solutions for off-grid solar projects , particularly the need for financing in local currencies to mitigate the risks associated with fluctuating foreign exchange rates . " We need to make financing more accessible , both in foreign currency and in local currency , to ensure offgrid solar projects can thrive in diverse markets ," Malm says .
She lists GOGLA ’ s requirements for the off-grid solar sector to successfully contribute to M300 as follows :
• Financing in local currency : Lend in USD and pay back in local currency as a hedge against foreign exchange devaluation
• VAT and import duties exemptions : Countries must meet debt obligations and accelerate energy access goals . VAT increases the cost to consumers , so we need to consider new models , such as debt-for-climate swaps , that create an offset for exemptions .
• DRE ( distributed renewable energy ) in Integrated Energy Plans : Include DRE / off-grid solar solutions at a level necessary to achieve energy access goals .
An off-grid solar project featured in RACA Journal in January 2025 .
• Results-based financing ( RBF ): RBF allocation must reflect and position DRE / offgrid solar to meet 50 % of the energy access targets . Take advantage of what has been and is working in RBF models , including using existing qualified fund managers and increasing efficiency with digital platforms .
• Risk allocation sharing : Off-grid companies take 100 % of the risk ; more risk sharing by the national government will derisk and attract more financing .
• Lead with energy access : # M300 is about providing the most affordable energy mix that meets consumer demand , and for many people , this will be Tier 1 household access . Let ’ s drop the debate on energy tiers and put access at the forefront of energy access goals .
The summit , organised by the African Development Bank and World Bank , brought together heads of state , government officials and key stakeholders from the energy sector . Malm took part in private sector discussions hosted by the Rockefeller Foundation and the GEAAP , where she presented a ‘ punch list ’ ( the goals listed above ) for the off-grid solar industry . Among her points , she stresses the need for national governments to collaborate with the private sector in order to deliver energy solutions at scale .
Sarah Malm , executive director of GOGLA .
Malm also points out the critical role that energy access plays in economic development , particularly in terms of job creation . She notes that providing energy access can unlock a wide range of opportunities , from agricultural productivity to
Supplied by GOGLA
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RACA Journal I April 2025 www . refrigerationandaircon . co . za