Investing in South-African solar energyIn developing countries, it is often difficult for companies to obtain financing.
Companies need sound and long-term financing solutions. Then they can invest, tap into new markets and create decent employment opportunities. But despite enormous potential for growth, companies and especially SMEs in developing countries often find it difficult to invest in their growth.
That is why SECO
provides companies with capital and technical expertise and trains local banks in
lending.
SECO cooperates with the Swiss Investment Fund for Emerging Markets (SIFEM), the development finance institution of the Swiss Confederation created in 2011. It provides long-term financial support to established SMEs and fast-growing companies in the form of shareholdings, loans and expertise.
SECO cooperates with the Swiss Investment Fund for Emerging Markets (SIFEM), the development finance institution of the Swiss Confederation created in 2011. It provides long-term financial support to established SMEs and fast-growing companies in the form of shareholdings, loans and expertise.
Change of scenery. The energy sector is South Africa: coal-fired
power stations generate 90 percent of the electricity, leading to high CO2
emissions. As demand for energy in South Africa rises, the power stations do
not have enough capacity to meet the requirements, causing recurring power
outages throughout the country.
While electricity costs in South Africa have risen by more
than 300 percent in the last 10 years, the cost of solar photovoltaic energy has
been falling. This is making solar power increasingly attractive to commercial
and industrial users, in turn promoting a climate-friendly economy. Nevertheless,
South-African SMEs are rarely in a position to finance their own solar energy
systems.
That is why SIFEM invests in the photovoltaic company
SolarAfrica via a fund. The company offers customers modern financing solutions
for solar panels on their roofs. SolarAfrica handles the procurement and
installation of the panels including commercial operation, monitoring and
maintenance. The company concludes power purchase agreements with its
customers. They pay only for the quantity of energy actually used and save up
to 40 percent in comparison with the electricity rates of the local energy
providers. SolarAfrica has installed more than 34,000 solar collectors to date.
Swiss Investment Fund for Emerging Markets SIFEM
Swiss Investment Fund for Emerging Markets SIFEM
One of SolarAfrica’s customers is the Apollo Hotel near Johannesburg.
«SolarAfrica always offers electricity rates that are lower than those of the public utility company. And we have absolutely zero investment costs.»
Jeffrey Hurwitz, Hotel Director
Access to financing
«SolarAfrica always offers electricity rates that are lower than those of the public utility company. And we have absolutely zero investment costs.»
Jeffrey Hurwitz, Hotel Director
Access to financing
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Investing in South-African solar energy
