Photo provided by Irri-Hub
While the world is racing to combat climate change, millions still lack access to electricity. The majority of these unelectrified communities are in sub-Saharan Africa, especially remote and vulnerable communities. The solution is distributed renewable solutions that don’t depend on the grid to provide affordable, clean energy.
East Africa is already leading the way in deploying solar home systems and other off-grid solutions. Some of the region’s most ambitious entrepreneurs are now looking toward a future where off-grid energy powers livelihoods and entire industries that meet the needs of people living in poverty. Productive use of energy (PUE) appliances like solar-powered refrigerators and e-bikes enable farmers and micro-entrepreneurs to move up the value chain while protecting the environment.
PUE is a win-win, but the industry is still nascent. African entrepreneurs face increased challenges in accessing capital. In 2023, 18% of the $426 million invested in off-grid solar companies went to locally-owned businesses. While this is an upward trend from investments in previous years, it is still far from achieving an equitable landscape for African entrepreneurs. Acumen is committed to addressing this challenge because we’ve seen how locally-led businesses can reach sustainable impact, have a home-team advantage, and support local talent in the countries where they operate.