Private investment will be necessary to develop this market, but businesses face serious challenges that can prevent profitability. Marketing relatively expensive and unfamiliar technology across hundreds of miles of remote terrain is not easy.
KPMG has released a paper on the innovative business models developed by companies funded by the Renewable Energy and Adaptation to Climate Change Technologies (REACT) window of the Africa Enterprise Challenge Fund (AECF). These businesses are testing out exciting new ways to overcome fundamental market challenges to bring sustainable energy to people in rural East Africa, with useful lessons to offer the renewables industry across the continent.
Conditions are improving for companies considering investment in renewable products and services for rural customers, but the market is still fraught with serious challenges.
On the global stage, renewable products are improving, prices are dropping and choice is increasing thanks to substantial market growth in renewable energy technologies and the number of manufacturers able to supply consumers worldwide.