Beyond the Grid Fund for Africa
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Result
Introduction This conclusion on performance covers the period 1 January to December 2024. It is based on two semi-annual reports, documentation and dialogue during semi-annual Steering Committee meetings (the first held in Helsinki, April 2024 combined with a workshop to discuss the evaluation of the Beyond the Grid Fund for Zambia program and an online meeting held in October 2024), dialogue with stakeholders, and continuous dialogue with Nefco, programme implementing organisation REEEP and NIRAS, and colleagues at participating embassies and the other donors contributing to BGFA as well as sector stakeholders like GOGLA, AMDA, A2EI, Acumen, Get.invest etc. The dialogue and collaboration with Nefco works very well and so does the collaboration with the other contributing donors. Results in relation to set aims and objectives. Objectives- Progress by end 2024- Comment Rapidly speed up delivery of high quality energy services and products to 5-15 million rural and peri-urban customers - 30 energy service providers contracted to deliver services to 8.6 million people. - More than 3 million people reached so far (one million more than in 2023)Mozambique window in a stage of contracting additional ESPs Establish public-private partnerships sustainably financing the off-grid renewable energy sector; e.g. through leveraging private finance from 15 40 concessional or private investors; -68 million EUR committed in debt and equity to ESPs which is 13 MEUR more than in 2023 - This outcome is supported by business development advice provided to the ESPs both as part of the BGFA program but also through globally financed program Get.invest - Some of the debt extended to ESPs comes from Impact Funds guaranteed under the regional strategy Stimulate data-driven, evidence-based decision making for governments, financiers, project developers and other actors through robust and accessible data, knowledge and learning systems;- BGFA Academy is an active online community of practice for BGFA portfolio companies Evaluation of the effectiveness of RBF mechanisms in supporting mini-grid operations across Africa - Partnerships with Get.Invest and PFAN continued. - Integration of Prospect (dMRV platform) is progressing Make policy more conducive for off-grid electrification through platforms for coordination, that are self-sustaining, run by local actors and interacting with each other; and - All participating countries have operational off-grid task forces hosted by government - A number of market reforms have taken place as part of the OGTF - Paper on OGTF experiences published To contribute to the inclusive and sustainable development of implementation countries, including toward climate change mitigation and adaptation, energy access, gender equality, and other relevant Sustainable Development Goals.- Impact study to be carried out during 2025 to validate results, measure impacts on customers and identify areas of ESP performance improvement Signed BGFA portfolio companies December 2024 Picture Map of BGFA countries and contracted ESPs Map Data infographics BGFA December 2024 Illustration Excerpt from the BGFA SmartME dashboard Main achievements during the period - Signing of the 30th BGFA portfolio company also bringing the Ugandan portfolio to full - Reaching over 3 million beneficiaries at the end of 2024 - Showcasing BGFA in several panel discussion and events at the COP29 in - Total disbursements to ESPs reached EUR 20 million - Active follow-up by Project Managers to support ESPs, to address emerging challenges and g. amending contracts as applicable. - Off-grid task forces now operational in all countries MAJOR EVENTS 2024 Evaluation BGFZ A final evaluation of the BGFZ programme that ran from 2016 to 2022 was conducted in 2024. The toatal cost of the program was 11.5 MUSD and of this 9 MUSD were awarded to four grantee companies. In addition the awarded companies mobilised an additional USD 49 million in co-financing with 21 new third-party financiers, hence the leverage target of 1:4 was overshot and resulted in a leverage of about 1:5. The awarded companies reached just over one million people by the end of 2022, of which around 840,000 were accessing an off-grid energy product for the first time. This has been delivered through almost 3 MW of installed renewable energy capacity. Around 12,000 tonnes of CO2 emissions were avoided by replacing kerosene lamps and dirty cooking fuels. Around 500 jobs within the companies, which have also put in place networks of around 1,400 sales agents. The highlevel findings of the evaluation were: BGFZ was highly relevant and coherent with other programmes; Overall BGFZ substantially achieved its objectives; However, success was to a large extent driven by one of the four companies; BGFZ was highly determinant in the realisation of these outcomes; The outcomes remain fragile and will need continued grant support; The data system proved complex and is yet to fully bear fruits. Key lessons: It can take a long time for companies to grow and to do so sustainably; There is a risk of grant-dependency, which to some extent may be inevitable but which needs to be managed with care. Key recommendations: Stay close to grantees and show pragmatism; Take a portfolio approach and have a high tolerance for failure; Take it slow and steady when it comes to raising co-finance; Focus on establishing a commercial market which can provide a launchpad to target subsidies to boost impact; Credibly commit to non-disbursement of funds; Explore solutions to local currency volatility; Dedicate resources to overcome gender barriers in the workforce. Evaluation of the support to national off-grid task forces The Off Grid Task orce (OGTF) component activities have advanced steadily across countries. In Burkina Faso, the Cadre de Concertation des Acteurs de l'Energie (CCAE) Secretariat strengthened stakeholder commitment, prioritizing four of twelve subcommittees with BGFA/NIRAS support. NIRAS secured financial backing for subcommittee workshops on Rural Electrification and Productive Use of Energy, with contributions from UNDP and the Africa Mini-grid Programme. Challenges persist with low Ministry and Secretariat engagement, requiring action led by NIRAS. In DRC, the OGTF (GTERD) held its first meeting on 19 July 2024, chaired by MERH and hosted by ANSER, with five subcommittees established under government and private sector leadership. The second meeting on 3 December announced plans to revise the Electricity Law in 2025 and restructured subcommittees, splitting Decentralized Mini-Grids and Individual Solar Kits into two groups and dissolving the Productive Use of Energy Subcommittee. ANSER continues to need NIRAS assistance to coordinate activities effectively. EnDev, an international energy access programme, is implemented in Uganda by GIZ, with PSFU as Fund Manager. Liberia's second OGTF Steering Committee meeting in August 2024 addressed off-grid sector challenges, notably e-waste management, advocating for a national roadmap and successfully renewing an Executive Order waiving import duties on solar products. Discussions with WB, GIZ, and RVO continue on avoiding double claims and KPI overlaps. Mozambique's Off-Grid Energy Working Group (GTER) collaborates with AMER on energy sector plans, supported by partners such as Enabel and EU-TAF. Post-election unrest in late 2024 disrupted institutional activities, postponing GTER meetings indefinitely. Meanwhile, the Swedish Embassy proposed a "country energy platform" to foster dialogue among stakeholders, reflecting Mozambique's growing energy sector funding. Uganda's Off-Grid Energy Working Group (OGEWG) subcommittees meet regularly after its first Steering Committee meeting in March 2024. The second meeting in October reviewed progress, identified challenges, and planned future steps. Zambia's 12th OGTF meeting on 31 October highlighted sector achievements and addressed challenges like deregulation of mini-grids below 5MW capacity, which may affect investor confidence. Closing Burkina Faso The Swedish Government has decided to phase out the development cooperation to Burkina Faso during 2024. It was agreed with Norway to transfer the obligations for the BGFA funded contracts and the OGTF under the Burkina Faso funding window from Sweden to Norway. Methodology accounting for mobilised capital Following discussions of a draft guideline on how to account for co-financing and mobilised capital under the BGFA program, Nefco has shared a final document outlining the methodology applied. Design support to Green Genset Facility (GGF) A feasibility assessment of a financing instrument providing working capital to solar energy service providers, was supported by BGFA that led to the creation of a new innovative financing instrument: the Green Genset Facility (GGF). In progress - A mid-term evaluation of BGFA was initiated spring 2025 and expected to be completed during 2025 - A general policy decision has been taken to transition from piloting to upscaling the integration of Prospect across the entire portfolio. This will be a stepwise process, likely to span most of 2025. - Strategic Review of Financing of Mini-Grids under the Beyond the Grid Fund for Africa commenced in November 2024 and will be completed by the end of H1 2025. COUNTRY WINDOWS Burikina Faso window Funding The total initial funding from Sweden in Burkina Faso was SEK 100 million (approx. EUR 9 million) of which 70% was made available for payments to investees. However, in early 2024, Sida informed Nefco that the Swedish Government has decided to phase out the development cooperation to Burkina Faso during 2024. It was agreed with Norway to transfer the obligations for the BGFA funded contracts and the OGTF under the Burkina Faso funding window from Sweden to Norway. Procurement of Energy Service Subscriptions In Burkina Faso four ESPs are contracted to deliver in total 121 141 Energy Service Subscriptions (ESS) at a total contract value of 6 Million Euro. Advance payments have been made to all four investees and three out of four projects are delivering ESS. Note that the % mentioned (% of scheduled target achieved) is referring to the achieved results in proportion of the target that was scheduled to be completed at this point. Oolu: Contract signed: 9 March 2022 ESS delivered (Norway): 1,682 / 93% of scheduled target achieved ARESS: Contract signed: 17 July 2022 ESS delivered (Sweden): 134 ESS delivered (Norway): 75 Total ESS: 209 / 54% of scheduled target achieved. Bboxx: Contract signed: 13 April 2023 ESS delivered (Sweden): 1,752 / 37.5% scheduled target achieved Qotto: Contract signed: 15 May 2023 ESS delivered (Sweden): 1,178 ESS delivered (Norway): 623 Total ESS: 1,801 / 93% of scheduled target achieved Change in eligible areas for Burkina Faso According to the BGFA1 Guidelines regarding the geographical focus in Burkina Faso, the cities of Ouagadougou and Bobo-Dioulasso are not eligible for BGFA funding. The security situation is one of the main challenges in Burkina Faso and two BGFA investees were requesting inclusion of the above- mentioned cities to be able to deliver the contracted impacts. Both Sida and Norad provided the no- objection to the proposal to expand the eligibility area in Burkina Faso. The change is permitted for all the investees. Technical Assistance By December 2024 the following TA support has been provided to ESPs in Burkina Faso: Oolu: TA provided on security, with in-country workshop. ARESS: The ESP received TA support in reviewing their Employee Handbook, and guidance was provided to include ESMS elements into the ESPs SOPs. TA also provided on security (security management plan development), with in-country workshop. Bboxx: TA provided on security, with in-country workshop. Qotto: A needs assessment was conducted in November 2024 in Cotonou, Benin. Qotto received TA on their ESMS during this period, and it was effectively finalised. TA also provided on security, with in-country workshop. Dss has provided e-waste support to all ESPs. Off Grid Task Force activities An Off Grid Task Force was established in the country in 2024 and been named Cadre de Concertation des Acteurs de l'Energie (CCAE). The technical Secretariat of CCAE has been able to strengthen the commitment of many off-grid stakeholders, including UNDP, ANEREE (the National Agency for Renewable Energy and Energy Efficiency) and the Renewable Energy Associations Cluster Solaire and Association des Professionnels des Energies Renouvelables du Burkina Faso (APER). Liberia Window Funding The total funding for Liberia is SEK 100 million (approx. EUR 9 million) of which 70% is made available for payments to investees, which corresponds to approx. EUR 6.4 million, using the current exchange rates. Procurement of Energy Service Subscriptions In Liberia four ESPs are contracted to deliver in total 95778 Energy Service Subscriptions (ESS) at a total contract value of 5.54 Million Euro. Three out of four projects are delivering ESS. Note that the % mentioned (% of scheduled target achieved) is referring to the achieved results in proportion of the target that was scheduled to be completed at this point. LIB Solar Contract signed: 24 Jan 2022 ESS delivered: 31,959 / 73% of scheduled target achieved. Mobile Power Contract signed: 4 Jan 2022 ESS delivered: 3,147 / 43% of scheduled target achieved. Easy Solar Contract signed: 16 Sept 2022 ESS delivered: 360. Technical Assistance By December 2024 the following TA support has been provided to ESPs in Liberia: LIB Solar: The contracted marketing agency did not perform as agreed and hence the contract with them was terminated. The company is currently searching for an alternative agency to support them with marketing efforts. Energicity: Needs assessment was completed in Benin in November 2024. A TA work schedule is currently being finalised to prioritise among the different TA topics identified. Dss has provided TA in relation to e-waste for Mobile Power, Easy Solar, and Energicity (LIB Solar was covered earlier). Off Grid Task Force Activities In 2024, the Off-Grid Task Force (OGTF) held key meetings to advance Liberia's off-grid energy sector. The August meeting in Monrovia addressed sector growth challenges, particularly e-waste management, emphasizing the need for a national roadmap. Success was achieved in renewing an Executive Order waiving import duties on quality-verified solar products. In November, the Rural Renewable Energy Agency hosted a National OGTF meeting with broad stakeholder representation, where six Subcommittees reviewed 2024 progress and presented the endorsed 2025 work plan. Zambia window Funding The total initial funding for Zambia was approx. EUR 23.8 million (Sida: SEK 200 million and KfW: EUR 7.5 million) of which 70% is made available for payments to investees, which corresponds to approx. EUR 16.5 million, using the current exchange rates. At the end of 2022, Norway joined BGFA with the aim of providing financing for projects on the BGFA1 reserve list, which resulted in Norad having a share in the Greenlight Planet project as well investing 100% in the WidEnergy and Solar Village projects. Procurement of Energy Service Subscriptions In Zambia 10 ESPs are contracted to deliver in total 822662 Energy Service Subscriptions (ESS) at a total contract value of 22.86 Million Euro. Seven out of ten projects are delivering ESS. Note that the % mentioned (% of scheduled target achieved) is referring to the achieved results in proportion of the target that was scheduled to be completed at this point. Vitalite Contract signed: 8 March 2022 ESS delivered: 11,648 / 94% of amended (reduced) scheduled target achieved RDG Collective Contract signed: 16 March 2022 ESS delivered: 19,810 /127% of scheduled target achieved Zengamina Contract signed: 9 March 2022 ESS delivered: 528 / 66% of scheduled target achieved (with amended timeline) EEA Zambia Contract signed: 20 May 2022 ESS delivered: 161,898 / 97.8% of scheduled target achieved Greenlight Planet (Sun King) Contract signed: 12 April 2023 ESS delivered: 104,442/239% of scheduled target achieved. Solar Village Contract signed: 24 May 2023 ESS delivered: 1,462 / 14% of scheduled target achieved WidEnergy Contract signed: 29 May 2023 ESS delivered: 1,721 / 60.6% of scheduled target achieved Technical Assistance By December 2024 the following TA support has been provided to ESPs in Zambia: VITALITE: The company has been more responsive during this period than previously. TA has been provided on ESMS, as well as on gender. RDG Collective: TA provided in the review of the Chief of Staff position and but at the end the ESP decided to prioritise recruitment of senior managers for commercial and sales. In addition, a review of the SOPs of the ESMS has taken place during the period. Zengamina: TA support in reviewing the Request for Proposals (RFP) for a subcontractor to install the solar PV system for the project has been provided. EEA Zambia: ESP has received support to enhance its Gender Action Plan. Further TA support has been provided on ESS technical review of Tier amendment following the ESPs proposed change of product offering. d.light Zambia: TA support on the development of a groupwide ESMS has been provided. Greenlight Planet (Sun King): A review of the ESPs training manual on Health and Safety was performed. Solar Village: TA was earlier provided for the creation of customised dashboards to enable data driven understanding of the companys sales and inventory movement progression. TA has continued in this field to support needed operational improvements. In addition, the company also received support in the development of their ESMS as well as fundraising support, both from REEEP and Get.Invest. WidEnergy: TA support on the development of ESMS has been provided. Zambia Rising Sun: ESP is being assisted in developing a Gender Policy, Gender Action Plan and SEAH Policy. In addition, TA support for the development of an ESMS started in December and will continue. Dss has provided TA to all ESPs in Zambia apart from Power Corner. Off Grid Task Force activities The 12th OGTF meeting took place in Zambia on 31 October 2024, with over 80 participants representing various sectors. Discussions focused on achievements in 2024, including Nefco's updates on BGFA status and lessons learned, and the World Bank's plans for solar rooftop leasing models and the ASCENT Zambia programme to scale off-grid energy. Afternoon sessions addressed challenges such as the deregulation of mini-grids up to 5MW under SI 52, which could impact investor confidence, and shifts in priorities by Cooperation Partners like USAID. NIRAS committed to seeking continued support from Cooperation Partners, including USAID and ILO, to achieve OGTF objectives. Mozambique Window Funding The total funding for Mozambique is SEK 100 million (approx. EUR 9 million) of which 70% is made available for payments to investees, which corresponds to approx. EUR 6.2 million, using the current exchange rates. A second call launched in July 2024 On 25 November 2024, the Swedish Embassy in Maputo informed Nefco that they will withdraw from the mini-grid funding window (BGFA2) and reallocate the funds to the PUE funding window (BGFA6). The reason behind the withdrawal is that the Swedish Embassy is engaged in another multi-donor programme targeting mini-grids in the country, that is in currently being set up. The second Call (BGFA6) in Mozambique was launched on 10 July 2024. A one-stage call targeting Pure Productive Use of Energy projects. The Call closed on 13 September 2024 and 12 applications were received by the deadline. Nefco performed an eligibility and completeness check on the applications with six projects passing and being forwarded for external evaluation. The main reasons for not passing the eligibility and completeness check were: not complying with the basic BGFA criteria regarding market experience, financial eligibility or proposed energy solution. The external evaluation was undertaken by external consultants provided by Power Africa. Three evaluators were involved in the process and each evaluator evaluated all six applications. All projects passed the threshold of 60 points and the ranking process resulted in three projects taken forward to due diligence (DD) by REEEP. The DD process started in late 2024 and will continue during the beginning of 2025, and its expected that the contracts will be signed with before the end of H1/2025. Off Grid Task Force activities The "Off-Grid Energy Working Group," known in Portuguese as Grupo de Trabalho Energia Fora da Rede (GTER), collaborates with the Mozambican Renewable Energy Association (AMER) to develop energy sector plans and coordinate mini-grid approaches, with support from partners like Enabel, EU-TAF, GET.Fit/KfW, GOGLA, and the Tony Blair Institute. However, security challenges following the October 2024 elections, including civil unrest and military interventions, have disrupted institutional support and postponed key meetings, leaving the future of GTER activities in 2025 uncertain. Meanwhile, the NIRAS Institutional Expert for Mozambique continued bilateral engagements, including discussions with the Swedish Embassy and energy stakeholders to align partnerships. The Swedish Embassy has proposed creating a "country energy platform" to bring together government, donors, and the private sector, reflecting Mozambiques growing energy funding and the need for coordination. Energy donors in Mozambique include Sweden (AECF, BRILHO, SOL), the World Bank (ASCENT, M300), the EU, Enabel, AfDB, and FCDO, among others. Uganda window Funding The total funding for Uganda is approx. EUR 27.4 million (Sida: SEK 130 million and Danida: DKK 117.5 million) of which approx. 70% is made available for payments to investees, which corresponds to approx. EUR 20 million, using the current exchange rates. Procurement of Energy Service Subscriptions In Uganda 9 ESPs are contracted to deliver in total 588107 Energy Service Subscriptions (ESS) at a total contract value of 20.62 Million Euro. Five out of ten projects are delivering ESS. Note that the % mentioned (% of scheduled target achieved) is referring to the achieved results in proportion of the target that was scheduled to be completed at this point. d.light Uganda Contract signed: 31 Oct 2022 ESS delivered: 43,219 / 68% of scheduled target achieved EEA Uganda (Fenix) Contract signed: 22 Nov 2022 ESS delivered: 203,387 / 96% of scheduled target achieved Tulima Solar Contract signed: 31 Jan 2023 ESS delivered: 574 / 86% of scheduled target achieved FINCA (BrightLife) Contract signed: 13 March 2023 ESS delivered: 8,581 / 36% of scheduled target achieved SunCulture Contract signed: 22 Jan 2024 ESS delivered: 142 / 21% of scheduled target achieved Technical Assistance By December 2024 the following TA support has been provided to ESPs in Uganda: d.light Uganda: Further TA support to finalise the ESMS has been provided EEA Uganda: The needs assessment has been completed but no TA support has been requested/provided. Tulima Solar: ESP received support with some follow-up activities related to the Data Privacy and Protection Policy. POPO: ESP has received TA regarding gender. Koolboks: ESP received TA for the developing the companys policies on Anti-Corruption, Health & Safety, and SEAH policies. In addition, the ESP received support on identifying CRM platforms that can integrate accounting tools. SunCulture: Gender Policy and Gender Action Plan support has been provided with some further support needed on the GAP. Equatorial Power: TA support received in the field of Data Protection, leveraging the for Tulima. In addition, REEEP supported the revision of the mini-grid feasibility study and some additional support around the development of the business models that suit the Productive Hubs has started and is expected to continue. NOA Energy Services (former Winch): TA needs assessment done during REEEPs TA mission to Uganda in November. Dss has provided and completed TA in relation to e-waste for Fenix (Engie), FINCA, Tulima, and d.light, and TA is ongoing for POPO and SunCulture. Off Grid Task Force activities The Off-Grid Energy Working Group (OGEWG) in Uganda has been active since its first Steering Committee meeting in March 2024. During the second meeting on 31 October, held alongside the Renewable Energy Conference 2024 in Kampala, progress, achievements, and challenges were reviewed, with subcommittees presenting their activities and 2025 priorities. Notable contributions came from Dr. Nicholas Mukisa, Adam Sparre Spliid, and Eng. Simon Ssekitoleko, who emphasized the government's commitment to the off-grid sector. Tragically, Eng. Ssekitoleko, a key advocate for OGEWG, passed away shortly after the meeting, marking a significant loss for the energy sector in Uganda. In late 2024, OGEWG initiatives continued, including facilitating tax-free solar equipment imports for BGFA investee PoPo and preparing an NREP/OGEWG website. Other developments saw the Uganda National Renewable Energy and Energy Efficiency Alliance seeking tax exemption clarifications and WWF funding a tax impact study. However, challenges persist, such as disruptions from the WB-supported Electricity Access Scale-Up Project and the sector's loss of Eng. Ssekitoleko's leadership. Upcoming Steering and Subcommittee meetings are expected in early 2025. Democratic Republic of Congo (DRC) Window Funding Sidas contribution to DRC totals SEK 200 million (approx. EUR 19.5 million) of which 75% is made available for payments to investees, which corresponds to approx. EUR 13.1 million, using the current exchange rates. In addition, Norad has agreed to contribute with funding in DRC. Norads part of the DRC portfolio is EUR 2.7 million. Procurement of Energy Service Subscriptions In DRC 3 ESPs are contracted to deliver in total 135223 Energy Service Subscriptions (ESS) at a total contract value of 13 Million Euro. Two out of three projects are delivering ESS. Note that the % mentioned (% of scheduled target achieved) is referring to the achieved results in proportion of the target that was scheduled to be completed at this point. MPDRC Contract signed: 18 Sept 2023 ESS delivered: 2,695 / 34.4% of scheduled target achieved Altech Contract signed: 13 Sept 2023 ESS delivered: 9,368 / 81% of scheduled target achieved Technical Assistance By December 2024 the following TA support has been provided to ESPs in DRC: MPDRC: The ESP has received TA related to gender and SEAH. Altech: The ESP has received TA related to gender. Nuru: The TA needs assessment has been carried out and some TA support has started on gender and ESMS. Spearfish is providing security support to all ESPs in DRC. In addition, dss contract has been amended to cover all ESPs regarding e-waste support and Altech TA is ongoing. Off Grid Task Force activities The Off-Grid Task Force (GTERD) held its first meeting in Kinshasa on 19 July 2024, chaired by the Ministry of Energy and Hydraulic Resources (MERH) and hosted by ANSER. The Secretariat consists of ANSER and ACERD, with five subcommittees led by various public and private stakeholders, including USAID, Altech, NURU, and Bboxx. ANSER requires ongoing support from NIRAS to coordinate subcommittee activities effectively. The second Steering Committee meeting on 3 December 2024 announced plans to revise the Electricity Law by March 2025, with input from GTERD subcommittees. A restructuring split the Decentralized Mini-Grids and Individual Solar Kits Subcommittee into two separate ones, while the Productive Use of Energy Subcommittee was dissolved. NIRAS will continue supporting ANSER in ensuring stakeholder engagement and regular subcommittee meetings aligned with the 2025 Work Plan. Security Situation The security situation in the DRC continues to be volatile. In the eastern parts of the country, the conflict between FADRC and various rebel groups, in particular the M23 group has become intensified. For more details see Note to file from January 2025 "Update Goma situation DRC".
The Beyond the Grid Fund for Africa (BGFA) is an innovative accelerated energy access financing programme managed by Nefco. BGFA was established by Nefco in 2019 on Sidas initiative, in light of early positive results under the Beyond the Grid Fund for Zambia, a pilot programme launched by Sweden in 2016. BGFA is now a EUR 126 million programme funded by Sweden, Denmark, Germany and Norway. USAID Power Africa is also contributing in kind with technical assistance. The overarching objective of the BGFA is to create access to basic and affordable renewable energy services for underserved people living outside the national electricity grid and to accelerate private sector growth in energy generation and distribution in Africa. The ultimate aim of the BGFA programme is the creation of long-term self-sustaining markets that can and will continue to expand beyond the expected four-year country programme implementation and access to BGFA financing. The principal technologies covered are standalone solar home systems (SHS), mini-grids, productive use of energy and a new category, battery rental systems. The BGFA funding lots also differentiate between maturity of companies: smaller, typically locally owned companies (Launch to Scale, or LS) and larger, better capitalised companies (Direct to Scale, or DS) in order to ensure fairer competition and balance the portfolio. BGFA uses a Social Impact Procurement approach, where public procurement is used to buy developmental outcomes - in this case, by incentivising private companies provision of affordable access to clean energy for low-income customers in hard to reach rural areas. The essence of this approach is to provide public financing needed to offload some of the typical risks for qualified private Energy Service Providers (ESPs) entering a market and help them bring their businesses to scale. The ultimate aim of the BGFA is to accelerate the creation of a long-term financially as well as otherwise sustainable market by kick-starting the market through offering a limited amount of public development funds to ESPs able to deliver and mobilise private funding. BGFA sets requirements for committed co-funding at the time of selection and additional mobilisation over the length of the agreement that must be reported to Nefco. BGFA is a multi-year, pan-African programme, which contributes to Swedish development cooperation strategy objectives and supports the overarching goal of the Swedish Power Africa mission of contributing to market development and mobilisation of capital, in support of acheiving SDG7 and other energy dependent SDG-goals in Africa. The objectives are: - to rapidly speed up delivery of high quality energy services and products to 5 15 million rural and peri-urban energy poor customers during the planned initial 6 year programme which include Burkina Faso, DRC, Liberia, Mozambique, Uganda and Zambia; - to establish public-private partnerships sustainably financing the off-grid renewable energy sector; e.g. through leveraging private finance from 15 40 concessional and private investors; - to stimulate data-driven, evidence-based decision making for governments, financiers, project developers and other actors through robust and accessible data, knowledge and learning systems; - to make policy more conducive for off-grid electrification through coordination platforms, that are self-sustaining, run by local actors and interacting with each other; - to contribute to inclusive and sustainable development in implementation countries, including toward climate change mitigation and adaptation, energy access, gender equality, and other relevant Sustainable Development Goals. BGFA progress fulfilment of objectives is measured, monitored and analysed systematically, for the BGFA Programme facility in its entirety as well as for each country programme. Reporting is comprised of key data from the energy service companies in terms of service delivery to men and women, geographic spread, payment modalities, employment effects, financial results, leverage of the Swedish funds combined with analyses of market developments in the countries. Assessment of social outcomes and impacts including gender, peace and conflict and human rights perspectives, will be summarised for the BGFA Programme facility in its entirety as well as for each participating country. BGFA has three pillars to its implementation. 1. Incentives and Procurement. A catalytic procurement pillar providing financial incentives to competitively selected Energy Service Providers (ESPs) in delivering on agreed milestones towards sustainably operating service providers and reaching a set number of customers in the form of active energy service subscriptions. 2. Platform for Market Change, which consists of technical assistance to a) host governments in establishing or furthering a public-private partnership in exploring and addressing market barriers and b) to contracted ESPs in advancing and where necessary adjusting their business model and strategy to be sustainable; and 3. Market information and analytics in the form of monitoring and verification of results that are part of the decision making behind financial incentives being paid out to contracted ESPs and providing evidence and market data that is fed into both the Platforms for Market Change and as evidence used to inform strategic business development advice to contracted ESPs.
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