13 October 2024: In an effort to drive domestic green energy investments, GET.invest launched its new service EDGE Finance (Enabling Domestic Green Energy Finance) at the Global Off-Grid Solar Forum & Expo 2024 in Nairobi. EDGE Finance specifically targets domestic financial institutions, such as commercial banks, microfinance institutions, and pension funds, providing them with the necessary knowledge, tools, and network to support green energy initiatives in their markets.

Green energy investments must increase significantly to meet universal energy access and global climate goals. However, many green energy projects and companies face significant barriers in accessing adequate funding which, when available, often comes with high costs, short tenors, and additional risks due to currency mismatches between inflows and outflows. Domestic financial institutions are well-positioned to address these challenges – given their deep market knowledge, financial assets, and ability to provide local currency funding – but they often struggle with limited experience in green finance, pipeline development, risk assessment tools, and the availability of tailored financial products for green energy projects.

EDGE Finance aims to support domestic financial institutions in overcoming these challenges by offering a comprehensive capacity building package that includes tailored coaching, training and advisory services. It will be implemented through a new and innovative combination of on-site staff coaching over several months and online training modules for deepening or reinforcing specific topics. The overall capacity building will target all green energy finance-relevant groups within financial institutions, from management level to risk, communication, SME, or corporate loan officers as well as other related teams.

The new service is part of GET.invest’s efforts to mobilise funding for clean energy and is closely linked to the GET.invest Finance Access Advisory (FAA), creating a comprehensive support system from project preparation to financial closure.

“EDGE Finance directly addresses the lack of capacity among domestic financial institutions to finance green energy projects. This capacity gap often leads to missed opportunities, as many institutions are unable to structure appropriate financial products or assess the unique risks of this kind of investments. Equipping domestic financial institutions with the right knowledge, tools and support is key to ensuring that they can be drivers of the green energy transformation.” - Sebastian von Wolff, Head of Finance Systems Advisory at GET.invest.

EDGE Finance’s activities will start with Kenya and later expand to additional countries where GET.invest operates. The service will be implemented by a consortium led by Internationale Projekt Consult GmbH (IPC), with support from the Renewables Academy (RENAC) AG. IPC brings over 40 years of expertise in helping banks and microfinance institutions strengthen their business models, explore new client segments, and capture emerging market segments such as green energy finance. RENAC complements this with over 20 years of excellence in green energy and sustainable finance training. Together, both partners have extensive experience working in GET.invest target regions and supporting financial institutions worldwide.

Financial institutions interested in receiving support can reach out at This email address is being protected from spambots. You need JavaScript enabled to view it. to express their interest, check the eligibility criteria and request application materials. Read more about our offer to domestic financial institutions here.

15 October 2024: The International Energy Agency (IEA) estimates $110 billion will be invested in energy across Africa in 2024, as global players leverage the continent’s potential for solar, wind and natural gas production.

Continued growth is dependent on significant investment, targeted at improving African energy infrastructure and human skill sets to support the global energy transition from fossil fuels to renewables.

According to Risana Zitha, Managing Director and Head of Africa at investment bank DAI Magister, emerging technologies, falling costs and digitalisation are paving the way to a profitable renewable business case across Africa. However, to successfully leverage this potential, a combination of attractive investment frameworks and policy development must be employed to relieve energy poverty in Africa, while strengthening its position in the global energy supply chain.

Zitha said: “A lack of investment in African energy infrastructure and maintenance has led to low-energy supply with high electricity costs, contributing to extreme energy poverty and notable ‘white space’ across the continent.

“Secondary impacts of a lack of affordable, reliable power include the reduced provision of education and public health, constricted economic development, and lower living standards. Establishing a framework that can scale to meet demand is essential if we are to improve household access to electricity and lessen the repercussions of energy poverty. Once in place, the foundations for a fully functioning energy market will deliver benefits on many fronts, creating jobs and attracting investment in the process.

“Spanning 54 countries of varying policies, regulations and levels of development, no single approach to energy accessibility can be applied across the whole continent. However, that does not make it less of a priority. While improved access will undoubtedly lead to a more resilient and prosperous economy, additional measures to drive digitalisation, including the adoption of online payment platforms, will aid in alleviating financial barriers for investors and end-users.

“Africa has no choice but to skip directly to renewable energy. Nigeria, Angola, Mozambique, Equatorial Guinea, Namibia and a very small number of other countries have oil and gas reserves of any significance and South Africa has coal reserves. Therefore, most other countries simply have no choice but to directly target renewable energy. The reward for energy companies that champion this approach is very high profit margins once they work out how to successfully scale their offering.

“After a reliable domestic energy pipeline is established, the next phase in the process is to export energy to neighbouring markets and bolster the global supply chain. In doing so, Africa can reap the full benefits of its renewable potential and convert abundant resources into genuine assets.”

Zitha concluded: “Efforts must be made to prioritise the development of modern, resilient and sustainable energy systems in Africa. Provided obstacles are navigated successfully and tackling energy poverty remains a key focus, Africa is at a pivotal point where its resources could redefine its global economic standing.”

15 October 2024: A new study from CrossBoundary’s Innovation Lab shows that reducing electricity tariffs for mini-grid customers in rural Sierra Leone significantly increased energy use. The study focused on “mini-grids” – self-sufficient electricity grids that serve households and businesses isolated from or integrated with the main grid. The Innovation Lab’s analysis suggests that while tariff reduction can drive energy consumption and benefit low-income consumers, it needs to be strategically implemented with supporting policies to ensure mini-grid sustainability.

Tombo Banda, CrossBoundary Managing Director & Innovation Lab Lead, explained the significance of the findings: “Lowering electricity tariffs makes power more affordable for rural communities. We saw average energy use per customer increase by 58% where tariffs were reduced, compared to just 6% in areas without tariff cuts. This demonstrates how making electricity more affordable can boost energy access and economic activity in rural areas.”

However, Banda cautioned that simply cutting tariffs isn’t a complete solution. “Reducing tariffs in countries where currency values are unstable and inflation is high can create challenges for mini-grid operators, especially if they have expenses in foreign currencies. We need additional de-risking measures to help these operators reduce their tariffs confidently.”

The study suggests several ways to support tariff reductions on a larger scale:

1. Optimized subsidy programs to maximize impact to end-users and minimize longterm dependency;
2. Financial tools such as hedging funds to offset macro-economic risks, such as currency devaluation;
3. Increased access to local currency financing for mini-grid projects.

Despite the 41% tariff reduction, revenues per customer did not drop; however, the study found that high inflation and currency devaluation did impact the real value of revenue collected. These economic factors also increased operating costs, which can affect the reliability of electricity supply.

“Our findings underscore the need for a comprehensive approach to developing mini-grids,” Banda concluded. “By making electricity both affordable for rural communities and sustainable for operators, we can unlock the full potential of mini-grids to drive rural electrification and economic growth across Africa.”

For more details on the study and its recommendations, visit: https://crossboundary.com/mini-grid-innovation-insight-harmonizing-tariffs-in-sierra-leone/.

22 October 2024: Madica, a structured investment program designed for pre-seed stage startups in Africa, has announced its investment in Earthbond, a climate tech startup unlocking affordable, reliable solar energy for Nigerian SMEs via an integrated clean energy marketplace. Following the investment, Earthbond will participate in Madica’s comprehensive investment program which includes 18 months of dedicated company-building support.

Launched in 2022 and affiliated with Flourish Ventures, a global Fintech venture capital firm with purpose, Madica provides investment funding of up to $200,000 and delivers support to portfolio companies through a highly personalised startup curriculum, hands-on mentorship, and fully-funded week-long founder immersion trips. Selected startups also stand to gain executive coaching opportunities, and access to Madica’s global network of investors for follow-on funding – all designed to spur growth and ensure the long-term viability of the startups.

Founded in 2023 by Chidalu Onyenso, an experienced product manager with an MBA degree from Harvard and more than 10 years in the field, Earthbond is tackling Nigeria’s $14B off-grid generator market by leveraging group financing and carbon accounting to reduce costs and risks in the energy transition. Between 2017 and 2023, Nigeria’s grid collapsed 46 times, forcing about 86% of companies to rely on costly and polluting fossil-fuel generators, which cost businesses over $29 billion annually. Solar power offers a cheaper and more sustainable alternative, but high installation costs deter small and medium businesses (SMBs) from its adoption. To address this challenge, Earthbond enables businesses to go solar through access to embedded solar finance and a marketplace of accredited solar installers and suppliers.

Since launch, Earthbond has completed audits for more than 100 qualified customers in Lagos, representing a potential pipeline of $1 million in solar projects. More than 1,800 Nigerian SMBs have also expressed interest by joining the waitlist, highlighting the gap and product-market fit. The rising startup has established partnerships with four local commercial and microfinance banks to facilitate loans for SMEs seeking to transition to solar power.

Madica’s investment will help drive Earthbond’s ambitious growth by boosting its financing capacity, enabling $10 million in targeted loan originations over the next 3 years. The funds will also enhance sales and marketing efforts and develop innovative maintenance and payment tools to enhance the customer experience. Additionally, EarthBond plans to create a unique revenue stream by offering discounts based on carbon credits, incentivising businesses to join the program.

Chidalu Onyenso, Earthbond CEO, said: “This is a pivotal moment for Earthbond, and a powerful endorsement of our mission. We’re really excited to be joining the Madica portfolio family. Leading the charge of energy transition is no easy feat and we are glad to be joined by renowned investors who share our passion and drive. We look forward to the doors this support opens and also to a greener and cleaner future”.

Emmanuel Adegboye, Head of Madica said, “We are excited to be investing in this exceptional startup as it tackles some of today’s biggest climate challenges. We won’t be able to continue the advancements of the African tech ecosystem without addressing power, and we are impressed by the team at Earthbond, their vision, and the technology that provides an affordable and eco-friendly solution. Earthbond has tremendous potential to drive an equitable clean energy future and positively impact our region.

“Investing in Earthbond reaffirms our mission to demonstrate that exceptional founders and products exist beyond the usual homogeneous groups, and we remain devoted in our quest to support underrepresented founders and fuel the growth of pioneering startups across underserved African regions.”

Earthbond recently joined fellow Madica portfolio companies Kola Market, GoBEBA, and Newform Foods and mentors on an immersive trip to London, showcasing Madica’s dedication to founder growth. This fully-funded, week-long initiative, coming on the back of the previous trip to South Africa was designed to fully immerse founders in the UK entrepreneurial ecosystem, opening up investment and partnership opportunities within the Afro-European corridors. Founders engaged in expert-led sessions, networked with potential investors and stakeholders, and participated in deep-dive workshops on investment readiness, organizational culture, and team building. As part of the carefully curated itinerary, the team also participated in various tech startup events and Africa & Diaspora-focused activities, including Africa Ignite x London Africa Network, Africa Tech Summit London Edition, London Startup Ecosystem Mixer by Hoaq and Wimbart, among others.

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About Madica: Launched in 2022, Madica is an Africa-focused pre-seed investment program empowering underrepresented and underfunded mission-driven founders on the continent. The sector-agnostic platform, affiliated with Flourish Ventures, aims to empower entrepreneurs with the provision of funding and also democratize access to world-class company-building support.