SunPower Afrique believes that the relatively small population and well organized microfinance community in Togo represents an ideal environment for a solar project of this magnitude and character to succeed.
In addition to providing MFI with the means to realize their existing development goals, SunPower Afrique maintains a larger mission to set up a tangible and successful example in which this new industry, solar energy, can be established in Togo. Eventually, the introduction of solar energy’s advanced technology on an even larger scale will trigger the creation of an infrastructure to support its expansion. Importantly, this infrastructure will require the development of a trained Togolese workforce to install and maintain it, creating jobs throughout the supply chain, boosting local economies and bringing Togo’s progressive economic growth into the international spotlight.
The Actors
Through a collaborative relationship between SunPower Afrique, the National Microfinance Committee (CNM,) and the Professional Association of Microfinance Institutions of Togo (APIM) and its members, each party shall bear certain responsibilities in order to facilitate the endorsement, installation and expansion processes. If all can provide the necessary conditions, we can succeed with the installations of solar energy systems for MFI in Togo, with the larger vision of improving the state of our environment, resolving a significant energy crisis, and reducing poverty.
On behalf of SunPower Afrique, our largest responsibility will be to mobilize the necessary funds to purchase materials for the installations of solar systems. We will undertake this as a registered non-profit organization in the US (pending.) SunPower Afrique will also supervise the installation of these systems to ensure that they are operational and achieve maximum performance.
SunPower Afrique will work with local personnel and materials as much as possible. A large part of our project will be, in the interest of sustainability, to train local workers so that they can maintain and troubleshoot the systems. This training will generate capacity within Togo’s burgeoning solar industry not to only sustain itself, but to expand to the creation of jobs and an infrastructure for material production and transport.
In addition, SunPower Afrique is committed to maintaining and further developing the mentality of conservation that inherently exists in Togo. To combat a looming global energy crisis, the world’s most developed countries and multinational organizations must begin to conserve resources, modeled on the techniques of preservation that already exist in countries with fuel shortages. SunPower Afrique hopes that Togo’s successful solar economy will be a symbol for conservation and progress. This exemplary and innovative development will not benefit Togo in both the short and long-term, through the creation of jobs and sustainable sources of energy.
The Strategy
The National Microfinance Committee (CNM)
SunPower Afrique will contribute to, in the capacity of an Accompanying NGO , the principle goals of the CNM to realize certain elements of the National Strategy for Microfinance (SNMF) that can be better accomplished with reliable access to electricity.
The consistent electricity provided by solar energy will afford the means to accomplish the following:
- Generally, for the CNM to “push for the creation and development of reliable and permanent microfinance institutions with access to sustainable services.”
- With electricity to run computers and programs, MFI can “Develop quality Information Management Systems (MIS) that provide timely statistical information and reliable financial data”
- Through a general increase capacity, MFI can “respond to and engage with clients to provide the best, adaptable services”
- With improved and modern information technology, MFI can “ensure transparency in the dissemination and reporting of financial information/data; as well as efficiently mobilize savings”
- With access to electricity, the CNM, individual MFI and external investors can “take advantage of investment in technical assistance in order to strengthen institutions and their capitalization.”
SunPower Afrique’s initial objective is to install solar energy systems for MFI that operate in non-urban areas so that they may gain an increased access to and guarantee of reliable electricity. These installations will trigger the creation of trained personnel within the geographical zone to provide and transport materials, install the system itself and to maintain it. The spontaneous job creation that will be a consequence of SunPower Afrique’s work will not only boost local economies as previously mentioned, but will also benefit Togolese commerce and industry from port to site.
With the provision of sustainable energy from the sun, MFI located in geographic zones that are currently excluded from the electric grid will be able to benefit from the same services as those MFI in urban/electrified areas. SunPower Afrique will therefore promote the ability of MFI “to offer sustainable microfinance products and services that are adaptable, diversified and extensive – notably in rural or isolated areas.” This project will show that access to reliable electricity is one of the largest “factors that allow the highest level of productivity for rural MFI to achieve their goals in the coming years.”
In the interest of alleviating poverty, MFI attempt to reach a widespread and often remote network of villages in order to provide credit to the working poor. Solar energy will generate a higher capacity for communication and organization, allowing MFI to elaborate “precise strategies for the best coverage of territory and the development of products adapted to the private sector in rural areas.” In the coming years, through the introduction of constant, affordable energy, MFI will experience sustainable growth, acquiring the means to reach an even larger number of clients in formerly inaccessible areas. This growth will consequently create a larger job market within the microfinance sector and, encouraged by the increased access to credit, will spur entrepreneurship in rural areas.
The National Strategy: Results and Actions
Through a forward-looking approach highlighted by the continued development of a mentality of conservation, we can contribute to the following positive developments for MFI:
Result 2.1 #99: The general improvement of professionalism of MFI in the sector.
SunPower Afrique sees that the following advances can be much better realized with, or in several cases are unable to be realized without, reliable electricity. As these developments are largely technical in nature, the durability and flexibility of solar energy will guarantee their success and sustainability for decades. For example:
2.1.2 “Pursue efforts to introduce management tools in MFI (loan management, procedure manuals, internal control/auditing and the general introduction of banking technology)”
2.1.3. “Put in lace information management systems to assure and disseminate regular and viable reporting for [under-the-radar] MFI.”
2.1.4 “Put ATMs in place for appropriate and well-developed MFI.”
Result 2.2 #100: The improvement of products and services offered by MFI.
With access to reliable and sustainable energy, MFI can better respond to their existing clients, reach a larger part of the population and, in this way contribute at a higher level to the reduction of poverty. Specifically, solar energy will help to realize the following goals:
2.2.3 “Extend MFI coverage in rural zones and create conditions to improve their viability,” and similarly, “Improve [existing MFI] coverage in geographical zones that are isolated and do not have access to electricity.”
2.2.5.2 “Identification of the constraints relative to each zone.”
2.2.5.4 “Elaborate on and set in motion measures to induce [development and improvement] of existing structures and/or create new structures in rural areas.”
Additionally, consistent energy will tangibly allow maintain and preserve resources, particularly equipment. When power goes on and off, equipment gets fried - with solar energy equipment will have a longer life, saving money and other such resources due to power purity and uniformity of current.
Professional Association of Microfinance Institutions of Togo (APIM)
In addition to working directly with the CNM, SunPower Afrique hopes to work on a micro-level with individual MFI realize their institutional goals. To access particular MFI and better understand national microfinance strategies, SunPower Afrique hopes to work within the structure of APIM. The services provided by SunPower Afrique are compatible with the mission of APIM, stated as: “To facilitate professional growth and development for MFI by reinforcing their capacity to offer services in accord with best practices.”
We hope to assist APIM, and its members, to most efficiently and effectively realize this mission. Solar power can not only “reinforce capacity” in general by guaranteeing access to electricity and the internet, but can also facilitate the standardization and widespread use of best practices through regular use of computerized accounting, automated financial reporting and robust data management.
All quoted material has been translated from the National Strategy For Microfinance. For more information, please visit: www.microfinance.tg
