SUPPORTING BANKABILITY OF MINIGRIDS IN SUB-SAHARAN AFRICA

The BankabilityLab Foundation aims at increasing the number of mini-grid propositions in Sub-Saharan Africa obtaining funding by providing independent transaction support and therewith standardize mini-grid propositions for finance.

The number of mini-grids required in Sub-Saharan Africa is estimated between 100,000 and 200,000. Of the 315 million people who will gain access to electricity in Africa’s rural areas by 2040, it is estimated that only 30 per cent will be connected to national grids. Most will be powered by off-grid household or mini-grid systems.

The implementation of renewable energy in Africa, in specific mini-grids at such scale, faces many challenges not the least in attracting funding. The Lab has the tools to accelerate implementation to the benefit of all involved.

The Lab provides ‘bankability’ review of and financial structuring support for mini-grid propositions by using an excel-based ‘shadow’-model. Mini-grid propositions can be presented to financiers / investors in a standardised way by the review report and the shadow-model prepared by the Lab which can accompany developer’s own material.

The financial engineering and bankability review are a balanced approach to all stakeholders in a proposition.

Renewable Energy Sub-Saharan Africa

Africa's GDP is experiencing and expected to continue an average rise of over 6% a year until 2023 (Worldbank). Several international business observers have also named Africa as the future economic growth engine of the world.  Overall, however, new renewable energy generation capacity is far from keeping pace with economic growth in Africa.

Use of electricity is linked to GDP growth (1% up is 1% more use as a rule of thumb), hence, if all future growth in Africa could be facilitated ,.... by green energy the global climate change combat would win very substantially.