Africa Clean Energy - Catalysing Africa's Solar Markets
Africa Clean Energy
Catalysing Africa's Solar Markets
Tt TETRA TECH
International Development
Key Findings Financing the SAS Trade
Supply Financing
Financing within the trade supply chain is
available at low levels.
Just 17% of traders have received supply
credit and only 4% have secured any
form of financing - mainly from MFIs and
commercial banks. Most traders are not
aware of financial institutions that offer
financing.
Loan amounts vary between 50,000 -
1,000,000 Naira (GBP 87 -1,757) with
short repayment periods. Traders tend
to use their land title deed or product
stock as collateral.
Consumer Financing
B
Ukaid
from the British people
SAS sales are almost exclusively in cash,
not credit, with the full cost paid upfront in most
cases.
Where credit or consumer finance is available,
repayment periods vary dependent on the
source - If credit from traders, typically 1 month.
If from MFIs, typically 6, 9, or 12-month period
with average monthly interest of 3.2% plus a
10% processing fee.
In instances of default, traders cited loss
of income as the primary reason. Other
reasons include competing priorities (37%),
poor product performance (24%), and
interest rate (16%).
PAYG is gaining traction for consumer
financing of SHS products.View entire presentation