MADAGASCAR – Government of Madagascar and the World Bank have appointed the impact investing platform, Bamboo Capital Partners (Bamboo) as the international fund manager for the Off-Grid Market Development Fund (OMDF or the Fund), a US$40 million renewable energy access fund.
OMDF was established in April and launches its financing operations with a first window for proposals for results-based financing (RBF) from 28 October to 8 December.
Société Générale Madagasikara has been appointed to host the OMDF funds and provide the financing.
Madagascar offers a potential customer base of 2.5 to 5 million households for solar lamps and market entry solar home systems.
The Fund will target companies that provide Malagasy households with quality products that are Lighting Global / VeraSol certified.
Bamboo’s partnership with Société Générale Madagascar combines the local market knowledge of Société Générale Madagascar with Bamboo’s deep expertise of managing international funds that invest in clean energy access solutions.
Jean Philippe de Schrevel, Founder and Managing Partner of Bamboo Capital Partners said: “Energy access remains a critical global challenge, with 800 million people without access to a reliable source of electricity. This problem is particularly acute in Madagascar, where access to electricity is a challenge for the large majority of households, especially those in rural areas of the country. OMDF builds on our decade of experience investing in the renewable energy sector and we are looking forward to collaborating with the Government of Madagascar, the World Bank and Société Générale Madagascar to provide clean, reliable and decentralized sources of energy to the underserved Malagasy population.”
The Fund will offer both an RBF facility and a credit line for off-grid solar companies and financial institutions active in the off-grid solar sector.
RBF grants support off-grid solar distributors in developing their operations in Madagascar.
The grants subsidize companies that offer quality products and services, with additional incentives for those offering end-customer financing solutions via pay-as-you-go models or through MFIs.
The facility will also help new market participants overcome entry barriers through a partial prepayment of the RBF grant.
OMDF will accept grant proposals from 28 October to 8 December 2020 and again from early 2021.
OMDF’s credit offering specifically finances working capital, stock building of quality products and end consumer financing.
It will also contribute to create credit history in Madagascar to attract further private sector financing.