Many Africans are turning to off-grid solar to provide electricity in their various households. As such, there are massive opportunities in the off-grid market in Africa.
The worth of these opportunities has now been put at a mouthwatering $24 billion according to the new report by business consultancy firm Kleos Advisory. It notes that these opportunities are fueled by the lack of electrification and access to the grid in Africa.
According to the report, released in time for the UK-Africa Investment Summit taking place in London this week, some 5 million pay-as-you-go home solar systems have been sold on the continent over the last four years and the market is accelerating, with over one million systems sold over the first six months of 2019.
The report notes that households with grid access spend an average of $200 per year on electricity, and with over 120 million African households still without access to power, this adds up to $24bn in potential commercial value.
The report, titled ‘The grid won’t connect Africa, but solar can’ states: “Given the ability of solar-fintech solutions to deliver power to African households along with the affordable financing to pay for it, solar could be the breakthrough technology that finally connects Africa’s vast off-grid communities.”
“The combination of solar and fintech is driving an economic transformation in Africa, making the ‘unbankable’ bankable and embedding African consumers in the digital economy.”
