Productive Use Appliance Financing Facility Opens First Public Auction Window
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 Appliance 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.