UNFCCC Workshop on Innovative Options for Financing the Development and Transfer of Technologies 272

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UNFCCC Workshop on Innovative Options for
Financing the Development and Transfer of
Technologies27-29 September 2004, Montreal,
Canada

• African Rural Energy Enterprise Development
• A New Approach to Public-Private Partnership
• Youba SOKONA
• Executive Secretary
• Sahara and Sahel Observatory (OSS)
• Boulevard de lEnvironnement BP 31 1080 Tunis,
  Tunisia

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Key Challenges for African Rural Energy Prospect

• Widening Access to Energy Services
• Massive Self Sustaining Scale-up
• Market Creation and/or Stimulation Within
  Across Countries
  
• Combination of Good Practices, Instruments
  Technological Options
  

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Rural Energy Services Framework
Rural Areas
Number of People
Urban Areas
CBOs
SMEs
Utilities
1/day
Poor
Wealthy
Income Levels
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The AREED Approach

• Focusing on the critical enablers enterprise and
  entrepreneur
  
• Combining services and capital
• Bringing together resources from multiple
  sources
  
• Targeted, customized tools and activities
• Real time, working, evolving partnerships to
  plan, implement and improve
  
• Cross platform learning

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The AREED Enterprise Centered ModelThe Basics
Investors
Donors
Charities
Public Purpose Specialty Organizations
Services
Capital
Entrepreneurs
Their Customers
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Demonstrating that needed energy services can be
delivered on a sustainable basis by small/mid
sized local enterprise and multiple partnerships
MFC
Others
ENDA
ECo NJ UNEP Paris UCCEE Risoe UN Foundation
KITE
TaTEDO
Countries Senegal Mali Ghana Tanzania Zambia
CEEEZ
ECo Africa
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Multiple Partnerships
1. Finance 2. Program
3. Implementation
4. Enterprise 5. Service Delivery

www.areed.org/partners
UCCEE
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Finance partnerships to bring together the
hard and soft resources that must be blended
to launch sustainable enterprises
e.g., United Nations Foundation
Investors
Donors
Charities
Public Purpose Specialty Organizations
Services
Capital
Entrepreneurs
Their Customers
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Program Partnerships to bring together the
governance, specialty expertise and local
presence required
e.g., UNEP, ECo, ENDA and KITE for AREED
Investors
Donors
Charities
Public Purpose Specialty Organizations
Services
Capital
Entrepreneurs
Their Customers
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Implementation Partnerships to deliver the
services and capital to entrepreneurs
e.g., ECo and ENDA in Senegal, KITE in Ghana,
MFC in Mali, TaTEDO in Tanzania and CEEEZ in Zam
bia
Investors
Donors
Charities
Public Purpose Specialty Organizations
Services
Capital
Entrepreneurs
Their Customers
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Enterprise Partnerships the creation and growth
of sustainable businesses
e.g., Bagani, Ubwato, VEV, Anasset
Investors
Donors
Charities
Public Purpose Specialty Organizations
Services
Capital
Entrepreneurs
Ther Customers
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KBPS, Zambia

• Business Charcoal production from sawmill
  waste
  
• AREED Support 73,000 loan Enterprise
  Development Support
  
• Investment Activity - Construction of 15
  argentine brick kilns- Development of marketing
  and distribution network
  
• StatusConstruction of kilns completed.
  Production, distribution and sales of charcoal
  started Feb 2003
  
• Using a waste product for fuel and a conversion
  process twice as efficient as traditional
  methods, KBPS is proving that a clean energy
  enterprise can both solve an environmental
  problem and be good business.

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VEV, Senegal

• Business Servicing of wind-powered water pumps
  in rural Senegal.
  
• AREED Support 17,000 loan Enterprise
  Development Support
  
• Investment Activity - Expanding inventory to
  shorten service times
  
• - Offering short-term credit to qualified
  clients
  
• StatusVEV has expanded its inventory and
  operations.
  
• Together, these services should help to ensure
  that most wind pumps in Senegal become - and
  remain - operational.
  

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Bagani, Mali

• Business Own and operate multi-functional
  platforms in the Kita area of Mali. Platforms
  powered on Jatropha oil, derived from Pourghere
  nuts.
• AREED Support 14,500 loan Enterprise
  Development Support
  
• Investment Activity - Own and operate two
  platforms eventually expand.
  
• First commercial business and investment in a
  multi-functional platform in Africa.
  

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Anasset, Ghana

• Business LPG distribution
• AREED Support 38,000 loan Enterprise
  Development Support
  
• Investment Activity - Purchase plant
  equipment
  
• - Increase sales
• StatusBought new bulk LPG tank and installed
  car dispenser. Increase in sales and profit
  margins
  
• The upgrading of infrastructure increase the
  delivery and service levels and makes the product
  more accessible to the community, decreasing
  dependence on traditional fuels

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Service Delivery Partnerships to deliver modern
energy to the under-servedto create choices for
services and income generation
e.g., Village and its six farmer-customers
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Enterprise Centered ModelHow Organizations
Working TogetherAdd Value
Investors
Donors
Charities
Specialized Funds Programs
Public Purpose Specialty Organization
Program Partners
Implementation Partners
Co-finance
Services
Capital
Government Policies
Entrepreneurs
Their Customers
Independent Evaluators Best Practices Dissemi
nation
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How Specialized OrganizationsWorking
TogetherAdd Value
UN Foundation UNEP
AREED Ghana
UNEP
KITE
Services
Capital
Entrepreneurs e.g., Gladymanual
Their Customers
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Whats New Here

• Partnership of value adding entities, driven by
  bottom line of service delivery and sustainable
  market presence
  
• Small/Medium energy enterprise development
• Local partner capacity building
• Financial institution linkages
• Policy linkages
• Targeting two levels sustainability
• Enterprise
• Enterprise developer

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Enterprise-Centered Model Value Chain
Specialized Intermediaries
Energy Services
Customers
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AREED Deal Flow
Investment Committee
Initial Go-No Go
Solar Bakery
Solar Dryers
PV SHS
Efficient Lighting
Fuel Switching
Solar Crop Drying
Water Pumping
Concept Stage
Solar Hot Water
Salt Drying
Butane Dist.
Biomass fuels
Coffee Husk Pelleting
Sawdust Briquetting
Formal EDS Stage
Financed Stage
Entrepreneur Training Stage
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Thank you and for more information
www.areed.org/partners