Due to energy production and infrastructure challenges, many African countries regularly deal with blackouts, brownouts and poor electricity supply. Then the COVID-19 pandemic hit the global economy hard, and commodity prices surged after the invasion of Ukraine, making energy even more difficult for poorer Africans to buy.
Increasingly, start-ups rather than established corporations are offering access to advanced solar energy solutions to the majority of people across Africa. By harnessing the sun’s power and transitioning to clean energy, Africans can expect major economic and social developments across the continent.
Headquartered in Nairobi, SunCulture has raised over $40 million to equip rural farmers with solar-powered irrigation systems. Instead of counting on rainfall or revving up diesel or petrol pumps, farmers can now rely on solar-powered systems that are cheaper, use renewable energy and need minimal maintenance.
Once the company installs a solar panel on top of a farmer’s house and connects it to a battery-powered water pump, the irrigation system can cover up to three acres.
In an impact survey of SunCulture’s customers, measurement company 60 Decibels [a US-based an organisation that offers customized assessments] found that SunCulture brought about significant improvements: 89 per cent of smallholder farmers experienced a boost in their quality of life, 90 per cent increased their production, and 87 per cent enhanced their earnings.
From GridX Africa, a firm that offers off-grid solar power to farms, safari lodges for tourists and construction projects in Kenya, Mozambique and Tanzania, to the pay-as-you-go solar company Bboxx and the Egypt-based solar power developer and electricity distributor KarmSolar, Africa has no shortage of original solar energy start-ups.
While the ambitions of these solar businesses are laudable, achieving high levels of growth is not easy.
By offering tools for solar developers to aggregate and pitch portfolios of projects to financiers, firms can access capital more effectively. To procure equipment more effectively, Odyssey streamlined the procurement process by negotiating directly with original equipment manufacturers for better prices and warranties and by working with developers for supply chain support.
More than 500 million people living in Africa have no access to electricity, according the IEA Africa Energy Outlook 2022. Governments and non-governmental organizations have launched many high-profile schemes to boost the solar energy sector in African countries, with mixed success. The continent needs a global response to address a challenge of this immense scale.
Launched in 2012, the US-Africa Clean Energy Finance (US-ACEF) initiative attempted to offset the costs of the early-stage development of clean energy projects, in a bid to draw investment to these ventures.
A Guest Editorial