Increasing energy access for sustainable development in Africa: E-Parliament Climate and Energy Hearing Njeri Wamukonya Nov 2006

External Shocks have contributed to deepen Energy Poverty Areas of Ongoing or Imminent Power Shortfalls in SSA 23 out of 48 SSA countries are currently vulnerable

e Commerce and Renewable Energy (eCARE)

Objectives...to expand access to telecommunications for urban development...to eliminate the energy barrier to telecoms access by utilizing renewable energy solutions

Why would e-Care work? Empirical evidence: Entrepreneur-run business centers (BCs) are providing, at affordable rates: Voice telephony Internet connectivity Online content Value-added services RE-powered BCs being proposed under eCARE can serve 3, ,000 customers Small entrepreneurs can reach urban and peri- urban customers

But: small entrepreneurs serving telecoms markets need... Start-up or growth capital Business support services Supportive regulatory and policy framework Reliable power supplies Network access

SELL: Voice telephony; Internet connectivity & content; Value- added services Select Franchisees Sell network access Provide business support services to Franchisees Oversee management of eCARE Fund Build strategic relationships Small entrepreneurs: Franchisees eCARE Franchisor /(Telecom regional offices/units) Management Board A franchise business structure makes it happen

Example of a standard franchisee package… How eCARE works : Technology

Each franchisee package is an integrated unit comprising: PV Array Subscriber Unit Lights InverterRegulator Battery bank Computers Printer/copier/etc Phones

ItemCost (USD) Telephone (3)45 Desk top computers (1)500 Renewable energy equipment 7,500 Subscriber terminal400 Furniture70 Container/Housing1,500 Total10,015 How eCARE works : Financing Cost structure of a standard franchisee package:

- Equity: minimum 10%; $500 - Debt (micro-finance): $4500 -Subsidy/grant: $5000 Financing plan (Franchisee level):

eCARE Facility: A fund that will be used to: Finance the debt portion of the financing plan Guarantee financing/co-financing from local financial institutions Subsidize value-added services for socially important groups such as school children, farmers, etc

Roles of partner financial instns (1) Provide co-financing to qualifying franchisees: direct/indirect equity contribution; and/or Debt financing Loan Administration Loan recovery

Monitor and coordinate performance of Franchisee through daily/weekly receipt into Accounts. Maintain system for the payment to Telecom on behalf of the Franchisee Apex Bank: Supervise and coordinate activities of participating Banks Roles of partner financial instns (2)

Roles of Telecom Extension of infrastructure to serve Business Centre connectivity Network operation and maintenance Day to day management of the project

Roles of local partner Entrepreneur identification and screening - in collaboration with participating financial institutions Enterprise development services for entrepreneurs - focused on enabling entrepreneurs to develop value- added products and services (economies of scope) for sustainability Participating in overall project management and strategic planning/implementation - specializing in renewable energy applications aspects

Roles of UNEP Supporting project management Fund-raising and facilitation of critical relations between eCARE and: - ICT and RE equipment providers - national and international sources of development finance Promoting enabling policies for accelerated diffusion of ICT applications of RE in off-grid areas

What can parliamentarians do? Encourage budgetary allocation across sectors

Asanteni Sana! Karibuni!