Increasing energy access for sustainable development in Africa:

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Increasing energy access for sustainable
development in Africa

• E-Parliament Climate and Energy Hearing
• Njeri Wamukonya
• 17-20 Nov 2006

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External Shocks have contributedto deepen Energy
Poverty

23 out of 48 SSA countries are currently
vulnerable
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• e Commerce and Renewable Energy
• (eCARE)

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Objectives
...to expand access to telecommunications for
urban development
...to eliminate the energy barrier to telecoms
access by utilizing renewable energy solutions
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Why would e-Care work?
Small entrepreneurs can reach urban and
peri-urban customers
Empirical evidence Entrepreneur-run business
centers (BCs) are providing, at affordable rates

• Voice telephony

• Internet connectivity

• Online content

• Value-added services

RE-powered BCs being proposed under eCARE can
serve 3,000 - 5,000 customers
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But small entrepreneurs serving telecoms markets
need...

• Reliable power supplies

• Network access

• Start-up or growth capital

• Business support services

• Supportive regulatory and policy framework

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A franchise business structure makes it happen
SELL Voice telephony Internet connectivity
content Value-added services
Select Franchisees Sell network access Provide
business support services to Franchisees
Oversee management of eCARE Fund Build strategic
relationships
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How eCARE works Technology
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(No Transcript)
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How eCARE works Financing
Cost structure of a standard franchisee package
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Financing plan (Franchisee level)

• Equity minimum 10 500
• Debt (micro-finance) 4500
• -Subsidy/grant 5000

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eCARE Facility A fund that will be used to
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Roles of partner financial instns (1)

• Provide co-financing to qualifying franchisees
• direct/indirect equity contribution and/or
• Debt financing

Loan Administration
Loan recovery
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Roles of partner financial instns (2)
Monitor and coordinate performance of Franchisee
through daily/weekly receipt into Accounts.
Maintain system for the payment to Telecom on
behalf of the Franchisee
Apex Bank Supervise and coordinate activities of
participating Banks
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Roles of Telecom
Extension of infrastructure to serve Business
Centre connectivity
Network operation and maintenance
Day to day management of the project
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Roles of local partner
Entrepreneur identification and screening - in
collaboration with participating financial
institutions
Enterprise development services for
entrepreneurs - focused on enabling entrepreneurs
to develop value-added products and services
(economies of scope) for sustainability
Participating in overall project management and
strategic planning/implementation - specializing
in renewable energy applications aspects
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Roles of UNEP
Supporting project management
Fund-raising and facilitation of critical
relations between eCARE and - ICT and RE
equipment providers - national and international
sources of development finance
Promoting enabling policies for accelerated
diffusion of ICT applications of RE in off-grid
areas
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What can parliamentarians do?

• Encourage budgetary allocation across sectors

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• Asanteni Sana!
• Karibuni!