Around the world, 800 million people still lack access to electricity. Close to 3 billion still rely on inefficient and polluting cooking systems. And 785 million lack even a basic drinking water service. The Sustainable Development Goals for clean water and sanitation and affordable and clean energy aim to address these problems, setting targets and indicators for each of these basic services.
A key piece of the puzzle to making progress on these targets is figuring out how to finance these services - both for infrastructure installation and ongoing service payments. Pay-as-you-go (PAYGo) financing is a growing business model that shows great potential to help more low-income people access basic services. The model varies depending on the service and the equipment needed for a household to access that service, but essentially it offers customers a way to set up a utility such as solar power, a water connection or a clean cookstove, and pay for the equipment and their ongoing usage as they go, instead of having to pay a large up-front cost. Since customers don't put up collateral, companies incentivize repayment by using technology that can automatically turn off the service if customers don't make their payments.
So far, most progress with PAYGo financing has been made with off-grid solar power, and in fact FinDev Gateway now hosts a community of practice, PAYGo PERFORM, dedicated to developing a reporting framework and key performance indicators for the PAYGo solar industry. However, other sectors, including water and cooking fuel, are starting to explore this model as well.
In this Gateway Guide, we share with you our latest FinDev Gateway resources on PAYGo financing for basic services. You can learn more about this business model through recent webinars and blog posts by professionals working in the field, as well as several publications which explore the challenges and opportunities experienced thus far.
Women entrepreneurs or those taking on a new career path in Turkey often hear this phrase from society, discouraging them from taking on less traditional roles. But now organizations in the country are working to unpack and overcome the insidious effects of gender-based social norms on women’s financial health.
September is on the horizon, and with that the return of conference and training season as we finish out the year. In this guide, we compile a list of key upcoming events that could help you connect with others in your field and contribute to your professional development.
Digital solutions that work well for literate people often fail to support inclusion among the estimated one billion adults worldwide who cannot read or write. My Oral Village is building on oral approaches to money management to broaden digital financial inclusion in Pakistan.
In this webinar, our speakers will share their first-hand experiences on how they got their employees to buy into the idea of transformation, and how they provided staff training to ensure they had the necessary skills.
In this webinar, panelists will provide insights into how MFIs should think about technology, the kind of IT infrastructure they need to digitize, and ways to overcome issues related to legacy operating systems.