Why Solar in Togo?
To meet daily needs, many West African homes and businesses compensate for the lack of reliable electricity with generators that run on gasoline or charcoal. Not only is this practice harmful to the environment, to populations’ health and not sustainable, it is extremely expensive.
Note: This figure is based on estimated generator usage for an MFI that runs a generator 4-6 hrs/day. This graphic is intended to illustrate a general trend and should only be used as a guideline.
In additional to the economic incentives for MFIs and other businesses currently using generators to supplement unreliable grid power in electrified areas, solar energy, a reliable and renewable source of power, can be used as primary power at rural, unelectrified sites.
As energy availability decreases and costs rise throughout the world, the attractiveness of solar as a sustainable and cost-effective option for developing economies will continue to increase.
Togo’s proximity to the equator, relative political stability, and small geographical size make it an ideal environment for a project of this character and scope to succeed.
In the words of our partners :
With solar energy, the principal, everyday operations [of this MFI] will be much easier! With reliable energy at all moments, we will not have to worry about electricity cuts and we can offer reliable services to our clients…
— Daniel Barondibou, Directeur General FECECAV (translated from French)
Just like in many areas of the world, microfinance has enabled the growth of small businesses, and empowered particularly women in villages across Togo. But the lack of stable and reliable energy source constrains severely organizations like Microfinance Institutions (MFIs) in Togo. Primarily dependent on hydroelectric power from its neighbor country, Ghana, Togo has always suffered from energy crisis due to frequent droughts.
SunPower Afrique’s mission to solve MFIs’ energy problem with solar power, starting in Togo, is a terrific idea. With the right support, SunPower Afrique will not only strengthen microfinance activities in Togo, but it will also be a major catalyst for solar power adoption in the region. I want express my gratitude to Kira Costanza for her vision and entrepreneurship with this project, and for her love for the Togolese people. Please support SunPower Afrique!
— John Messavussu, Togolese Ex-Pat, California
The National Microfinance Strategy, adopted in 2004 by the Togolese Government and reinstated in October 2007 for 5 years (2008-2012), lays out the following as a goal in its 2nd statute : The consistent offering of adapted, diversified microfinance services from a network of professional MFIs, notably in rural areas. It is precisely under this statute that we promote the expansion of MFIs in the rural areas throughout our country; Microfinance is proving itself as one of the most effective tools in the fight against poverty.
Among the actions envisioned to create favorable conditions for the expansion of MFIs in rural areas, the resolition of the energy crisis consistently places iteslf in the way of a national priority.
This is why the National Microfinance Committee [CNM] finds SunPower Afrique’s projects so interesting and important…the CNM sees solar energy as a durable and sustainable solution. If this project can be realized, [electricity] will permit the reinforcement of financial transparency by putting in place reliable databases and information technology.
We hope that this solar energy project for our MFIs will actualize, for the greatest happiness of rural populations who will have more and more access to microcredit.
— Jaques Koami NAGNIMARI, Chargé de mission, National Microfinance Committee of Togo
(translated from French)
