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When ‘Patient Capital’ isn’t Patient Enough: How Mismatched Funder Timelines in PAYGo Solar are Holding Back Energy Access in Africa
The energy access conversation in Africa is usually framed around deployment, with success defined by connection targets, cost reduction and rural reach. But Kolawole Osinowo at the FATE Institute argues that these goals don't address a binding constraint for companies working at the last mile: the time it takes for households to repay the solar assets they bought via PAYGo financing. As he explains, the PAYGo model spreads out payments for the benefit of the consumer, but it adds the cost of waiting to the provider’s balance sheet — and that cost later spreads to the company’s investors. And though much of the capital that supports energy access presents itself as patient, willing to wait for these PAYGo assets to be repaid, in practice, these investors often behave otherwise. He discusses the impacts of this mismatch, and explores how capital can be structured for better alignment with PAYGo timelines.
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Viewpoint: Why African Agriculture Must Prepare for its Nana Benz Moment
African smallholder farming is facing a succession crisis that threatens the loss of generations of accumulated knowledge.
- Categories
- Agriculture
- Region
- Sub-Saharan Africa
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Taking First-Loss Guarantees Further: Four Problems That Keep Social Enterprises Stuck, and How Entrepreneurship Support Organizations Can Address Them
Grants and equity dominate the conversation in impact finance, but according to Srinivas Ramanujam at Villgro, debt is often the most practical tool for social enterprises that are too large for a grant, but too small and early-stage for most equity investors. And since lenders face real and perceived risks around these companies' creditworthiness, first-loss guarantees can help make debt capital more accessible. However, he explains that a guarantee alone is not a silver bullet, and that the harder work involves solving the problems that keep enterprises stuck. He explores how Villgro has addressed four of these key challenges, highlighting takeaways for entrepreneurship support organizations and other intermediaries.
- Categories
- Investing, Social Enterprise
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Indonesia’s Jailing of Gojek Founder Raises Fears for Investor Confidence
Authorities say Nadiem Makarim abused his authority to favour Google in the procurement of laptops for school kids.
- Categories
- Education, Investing, Technology
- Region
- South Asia
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Philippines Taps AI to unlock Bank Loans for Small Businesses
The agreement aims to strengthen creditworthiness, boost productivity, and streamline loan application processes for local entrepreneurs.
- Categories
- Finance, Technology
- Region
- Sub-Saharan Africa
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Making Waste Pay: The Keys to Sustaining Paying Customers in Solid Waste Management
Despite growing discourse around the revenue potential of waste to wealth — i.e., reimagining waste as a valuable resource — profitability in municipal solid waste management remains low in India and other low- and middle-income countries. As Vishwanath Varma, Archana Masih, Diksha Rana and Ashish Kapil at Waste Warriors Society argue, this challenge has led to a growing focus on collecting user fees from households — yet that goal is easier said than done. They share analysis based on Waste Warriors Society’s user fee records and customer surveys, which reveals key insights on how to retain paying customers in solid waste management and other user fee-based models of social entrepreneurship.
- Categories
- Social Enterprise, WASH
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MIGA, Deutsche Bank Partner to Increase Trade Finance in Frontier and Emerging Markets with EUR 1 Billion Guarantee Platform
The platform is not only seeking to expand access to trade finance but also has targets to direct a meaningful share of the trade finance volume enabled by MIGA's participation toward priority areas, including International Development Association (IDA) countries and Fragile and Conflict-affected Situations (FCS), small and medium enterprises (SMEs), agriculture, health, and water.
- Categories
- Finance
- Region
- Global
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Analysis: Building AI on African Terms
AI promises new opportunities for African businesses, but it also risks deepening technological dependency.
- Categories
- Technology
- Region
- Sub-Saharan Africa
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