This 2023 REPP–AMDA report, based on a mini-grid CEO roundtable in Nairobi, examines how collaboration between developers, financiers, donors and governments can unlock investment in Africa’s mini-grid sector.
Its main recommendations are to:
- Expand suitable financing: provide patient growth capital, equity and concessional funding that reduce risk and attract commercial investment. Financing schedules should align with results-based funding programmes.
- Simplify investment processes: streamline due diligence, standardise grant applications and reporting, and encourage financiers to share assessments and lessons.
- Reduce regulatory and currency risks: establish enforceable rules covering tariffs, grid arrival, contract termination and compensation, alongside faster portfolio-based licensing.
- Strengthen local developers: provide targeted technical assistance, working capital and support for fundraising, financial management and organisational growth.
- Improve environmental, social and governance practices: harmonise reporting, involve communities and address human rights risks throughout equipment supply chains.
The central message is that scaling mini-grids requires predictable financing, effective regulation and stronger transparency and trust across the sector, supported by adequately resourced institutions.