Nairobi, Kenya, 12 April 2023 – Access to productive use appliances can deliver significant economic, health, education, and quality of life benefits for the approximately 600 million people across the African continent who lack access to electricity. This can also put under-electrified parts of the world on a low-carbon pathway to electrification. However, affordability remains a major barrier to access and scale. The Productive Use Financing Facility aims to help address the affordability barrier, and the current auction window will make procurement subsidies available for companies in six African countries.

Makena Ireri, Director at the Global Energy Alliance for People and Planet, said, “The Facility will help make high-quality, productive use appliances more affordable and accessible. These technologies can transform lives and livelihoods by helping to create new green energy-enabled jobs, enhance income generation for micro-enterprises and smallholder farmers, and improve the sustainability of renewable energy infrastructure projects through increased demand for electricity.” 

The Facility’s initial scope includes the Democratic Republic of Congo, Ethiopia, Kenya, Nigeria, Sierra Leone, and Uganda based on growth potential and market maturity. Eligible technologies include electric pressure cookers, fans, milling, solar water pumps, refrigerators/freezers, and walk-in cold storage. All technologies must complete quality assurance testing, helping to ensure that users receive high-quality products.

Eligible distributors can also apply for capacity-building small grants to offset one-off costs associated with nascent PUA business lines, such as warehouse space, staffing, or training. The procurement subsidies and capacity-building grants will allow eligible companies to lower costs for customers while investing in long-term growth. Participating companies may also agree for the Facility to share their information with Nithio, should they wish to be considered for debt investment to help them further scale their business and reach more consumers.

Interested companies should send in their applications by the end of day on April 21, 2023. Please check out these resources to learn more about the program, including eligibility requirements of the procurement subsidy auction window and how to submit a subsidy request. For any other questions, please get in touch with financing@clasp.ngo.

About the Facility

Launched in October 2022 by CLASP and Nithio, with support from the Global Energy Alliance for People and Planet (GEAPP), the Facility supports companies in catalyzing the growth of productive use appliance markets. Facility operations will also generate a foundational data set on appliance market activity and the developmental impacts of appliances, improving our collective knowledge base on appliance performance, national markets, and consumer experience and satisfaction.

Companies can leverage the Facility to access bulk discounts on solar appliance procurement and offer products on credit to lower the cost of appliances for end-user. The Facility also provides smaller capacity-building grants and advisory support for PUA distributors to help establish credit systems and increase their investment readiness.

Facility support is intended to help companies expand their reach and cater to a broader market, helping to deliver essential technologies to more consumers in East and West Africa.

About CLASP

CLASP focuses on appliance & equipment energy performance and quality, to mitigate and adapt to climate change and expand access to clean energy. Super-efficient and high-quality appliances accelerate access to and use of renewable energy for the world’s poorest people. CLASP supports progress on the United Nations’ Sustainable Development Goal 7, affordable and sustainable energy for all. Renewable energy services like cooling, communications, and mechanization empower low-income communities and improve lives in a climate-friendly way. CLASP works globally and has teams in Washington, DC; Nairobi, Kenya; New Delhi, India; Brussels, Belgium; and Jakarta, Indonesia.

About Nithio

Nithio is an energy financing platform powered by its innovative credit risk analytics engine. Nithio leverages its deep sector expertise, geospatial data, and artificial intelligence (AI) to forecast repayment patterns by consumer segment, provide detailed insight on projected cash flows, and finance energy access technologies.

About the Global Energy Alliance for People and Planet (GEAPP)

The Global Energy Alliance for People and Planet (GEAPP) is an alliance of local entrepreneurs, governments in emerging and developed economies, and technology, policy, and financing partners. Our common mission is to support developing countries’ shift to a clean energy, pro-growth model that ensures universal energy access and unlocks a new era of inclusive economic growth, while enabling the global community to meet critical climate goals during the next decade. In doing so, as an Alliance we aim to enable 150 million new jobs, reduce 4 gigatons of future carbon emissions, and expand clean energy access to one billion people. With philanthropic partners, Bezos Earth Fund, IKEA Foundation, and The Rockefeller Foundation, GEAPP works to build the enabling environment, capacity, and market conditions for private sector solutions, catalyze new business models through innovation and entrepreneurship, and deploy high-risk capital to encourage private sector solutions, and assist just transition solutions. For more information, please visit www.energyalliance.org and follow us on Twitter at @EnergyAlliance.

Media Contact

Lisa Kahuthu, CLASP: lkahuthu@clasp.ngo