Many African firms want to get into renewable energy, but have no idea how to start. Some may model their business on a foreign model, but that isn’t necessarily the way to help expand in the continent. In mid-2013, GVEP International began its Advisory Services group which provides technical, financial, and operational support to small and growing businesses.
The division was established through a grant from Swedish International Development Cooperation Agency (Sida) and is composed of 13 experienced professionals in the energy and financial sectors. The GVEP Advisory Services group is structured to be flexible and market-responsive, enabling the provision of services with minimal administrative burden. The group engages with businesses delivering products and services across technologies and electrification models, from cookstoves to mini-grids, and conducts feasibility studies, assists in the development of projects, and completes other consulting assignments.
The company said in a release, “While investment-readiness is a focus area, critical in creating demand for capital, the team also focuses on increasing the supply of capital available to the businesses in the sector.” In addition, it works with a number of investors and financial aid organizations to support the development of the private sector – which the head of Advisory Services Peter George said was critical to the sector. And while the ultimate goal is commercial investment in financially viable businesses, “[GVEP Advisory Services] recognize the importance of grants in the early-stages of growth. We support clients in accessing various forms of capital including grants, and to efficiently and effectively utilize that capital,” George added.
While investment-readiness is a focus area, critical in creating demand for capital, the team also focuses on increasing the supply of capital available to the businesses in the sector. In addition to working closely with a number of investors, grant-makers and other sources of commercial and philanthropic capital, GVEP is developing credit enhancement mechanisms and other innovative financing initiatives.
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