The 22nd session of the United Nations Climate Conference announced a new financial investment plan totaling $4 million. The funding will be allocated among eight companies whose entrepreneurial endeavors aim to provide conduits for the development and accessibility of African solar energy.
Presented by the Scaling Off-Grid Energy: Grand Challenge for Development initiative, the investment reflects goals to increase the accessibility of electric power for households and businesses in Sub-Saharan Africa. The U.S. Agency for International Development (USAID), Power Africa, the U.K.’s Department for International Development (DFID) and the Shell Foundation collaborated to found the off-grid energy plan in June 2016. The plan has since become a $36 million initiative with hopes to establish 20 million new conduits for electricity.
Established as a program through the Power Africa initiative, private and public sector collaborators have committed $52 billion to African solar energy development, while over $40 billion in investments are from private sector associates.
According to USAID, 600 million people living in Sub-Saharan Africa live without access to electricity. The ability to utilize such resources is pivotal to an individual’s ability to engage in the global economy and impedes the ability of families to consume modern fuels.
Companies originating in countries such as Uganda, Ghana, Kenya and Zambia received grant funding for demonstrating exceptional responses to providing low-cost options in correlation to traditional methods, attaining meticulous records of success and practical plans to develop effectively proven products to scale.
USAID emphasizes that sustainable energy efforts will “improve payment and distribution processes”, while also being more cost-efficient for customers of African businesses. Product development goals range from modern technology – such as software that allows for eased methods of payment for electricity use – to the production of “pay-as-you-go” household solar tools. Companies like Village Energy are also establishing training facilities for young men and women to become technicians and manage retail shops to facilitate the development of rural service networks.
– Amber Bailey