Market Study on Scaling Up Off-Grid Solar in Benin, Burkina Faso, Côte d’Ivoire, Ghana, Senegal, and Togo

in Benin, Burkina Faso, Côte d’Ivoire,Ghana, Senegal, and TogoPublic Disclosure Authorized © 2024 International Bank for Reconstruction and Development/The World Bank 1818 H Street NWWashington DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of TheWorld Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data included in this work. Itdoes not assume responsibility for any errors, omissions, or discrepancies in the information, or liability concerningthe use of or failure to use the information, methods, processes, or conclusions set forth. The boundaries, colors,denominations, links/footnotes, and other information shown in this work do not imply any judgment on the part ofThe World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries.The citation of works authored by others does not mean the World Bank endorses the views expressed by thoseauthors or the content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver of the privilegesand immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages the dissemination of itsknowledge, this work may be reproduced, in whole or in part, for noncommercial purposes provided full attributionto this work is given. Anyqueries on rights and licenses,including subsidiary rights,should be addressed to World BankPublications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625;e-mail:pubrights@worldbank.org. Report design:Simpelplus.de Acknowledgments This market study was prepared for the World Bank’s Compact with Africa Green Business Fund. Its preparationwas overseen by Samuel Jovan Okullo and Richard Claudet with support and guidance from several World Bankcolleagues, including Laurent Granier, Elisa Portale, Raihan Elahi, Jan Friedrich Kappen, Yuri Lima Handem, andYanchao Li. Umberto Trivella, Energy Finance Program Manager, and Paul Picot, Ecosystems Platform Director at CIDR Pamiga,led the preparation of the report. The report benefited from inputs and reviews by Sylla Elhadji (ECREEE), Attikou Diawara (BOAD), Patrick Doyle(IFC), Nana Asamoah-Manu (IFC), Oliver Reynolds (GOGLA), and Iñigo Ibiricu Anguera (WB). Several experts were involved in conducting the study in each of the target countries, including Cyrille Hounsou(Benin), Georges Somda (Burkina Faso), Frédéric Viho Kolor (Côte d’Ivoire), William Addo (Ghana), Mansa Oualy(Senegal), and Kodjovi Sogan (Togo). Appreciation also goes to several interviewees who participated in the stakeholder meetings conducted within theframework of the study. Table of contents Acknowledgments Acronyms Key definitionsxi Synthesisxv 1. Introduction 2.1. Key strategies and policies at the regional and international levels52.2. Key strategies and policies at the country level92.3. Impact of COVID-19 and evolution in the post-pandemic context152.4. Main challenges related to the policies, strategies, and regulatory environment162.5. Potential and needs to strengthen the sector17 3. Initiatives for OGS development 21 3.1. Main initiatives at regional level223.2. Main initiatives at the country level283.3. Main challenges faced for the development of the OGS sector363.4. Potential and needs to strengthen the sector38 4. OGS equipment distribution landscape39 4.1. Overview of interviewed solar companies414.2. Impact of COVID-19 and evolution in the post-pandemic context434.3. Solar equipment distributed444.4. Current access to finance of solar companies484.5. Potential and needs to strengthen the distribution of equipment49 5. OGS financing landscape 5.1. Financial institutions545.2. Institutions managing financial instruments74 6. Conclusions and recommendations85 6.1. Proposed RSF to enhance solar financing876.2. Proposed capacity-building and training measures for OGS stakeholders97 Annex 1: List of stakeholders interviewed101 Bibliography 107 List of Tables Table 1Access to electricity in the six target countries (% of the population)4Table 2Key policy/regulatory challenges and recommendations per target country14Table 3Solar energy kits sales volumes in targeted countries in 202232Table 4Key solar appliances sales volumes in targeted countries in 202232Table 5Main information on interviewed solar companies33Table 6Main types of solar equipment distributed35Table 7Most common payment plans offered to end users36Table 8Solar companies’ desired/preferred financing terms40Table 9Number of FIs interviewed by category and country43Table 10Key information on interviewed FIs43Table 11Experience of interviewed FIs in financing OGS46