New USAID/Power Africa Grants Expand Electricity Access in West and Central Africa
More than $750,000 in new USAID/Power Africa grants will help solar home system companies expand electricity access to underserved markets in West and Central Africa
For Release:
Tuesday, February 18, 2020
Nairobi — Power Africa, through the United States Agency for International Development (USAID), announced four new grants totalling $788,000 to expand off-grid energy access in underserved geographic markets in Cameroon, the Democratic Republic of the Congo (DRC), and Sierra Leone. The grants to expand operations are awarded to American Engineering Group (AEG) Congo, BBOXX DRC, Ignite Power, and upOwa.
The grantees will pilot new distribution channels and consumer credit plans to increase energy access in remote and lower-income areas of West and Central Africa. Awardees will also expand their on-the-ground presence to bolster sales and customer support.
AEG Congo will develop a customer credit monitoring application and deploy a network of sales agents to reach customers in remote areas of DRC with solar-powered light and phone charging kits. The company also plans to develop technology to improve distribution and management of solar home system (SHS) kits in areas without internet connectivity.
BBOXX DRC will introduce pay-as-you-go (PAYGO) solar energy solutions to DRC’s Ituri and Grand Nord regions, where less than 5% of the population currently has access to energy. To establish a distribution network and points of service for sales and customer support, BBOXX will set up a warehouse, repair center, and regional outlets and kiosks.
Ignite Power will expand its clean energy distribution network to eastern Sierra Leone and leverage partnerships with rural entrepreneurs, independent village agents, savings groups, local distributors of electronic products, and youth groups to serve rural off-grid communities. Where mobile money options might be limited, payment will be accommodated through local businesses acting as points of sale.
To increase access to solar home systems in the East Region of Cameroon, upOwa will upgrade its PAYGO software, conduct an area mapping, and employ local sales and customer support staff. The Power Africa grant will allow upOwa to pilot innovations, such as structuring repayments for farmers around the harvest calendar and partnering with cooperatives for collecting payment.
“Power Africa’s investment in these companies demonstrates to investors and industry stakeholders that ‘last-mile’ populations constitute a viable market segment,” said John Irons, Acting Power Africa Coordinator. “SHS markets in West and Central Africa are still predominately cash-based and have yet to be penetrated by PAYGO technology compared to parts of East Africa. Power Africa is working hard to change that.”
The competition was administered by the USAID-funded Power Africa Off-grid Project in support of Power Africa’s Beyond the Grid initiative, which contributes to the goal of facilitating 60 million new electricity connections by 2030.
About Power Africa: Power Africa is a U.S. government-led partnership that brings together the collective resources of over 170 public and private sector partners to double access to electricity in sub-Saharan Africa. Power Africa’s goal is to add more than 30,000 megawatts of cleaner, more efficient electricity generation capacity and 60 million new home and business connections by 2030. For more information, visit www.usaid.gov/powerafrica
