Energy Microfinance & Pay-As-You-Go

Access to energy remains a key challenge for rural populations in Sub-Saharan Africa. Since 2013, CIDR Pamiga (formerly PAMIGA) has been facilitating and supporting partnerships between microfinance institutions (MFIs) and solar equipment distributors to promote access to solar energy for low-income populations in various Sub-Saharan African countries. In 2018-2019, in Benin, together with ARESS and MyJouleBox, CIDR Pamiga and its partners have developed and tested innovative approaches to integrate the PAYGO technology in MFIs’ credit methodologies in order to increase access to solar energy for rural households and micro, small and medium-sized enterprises (MSMEs).

This case study presents the background and characteristics of such approaches, as well as the preliminary results and lessons learned, with the aim of inspiring other players in the sector to build on these experiences to expand energy access around the world.