To find an enterprise idea that can create immediate positive impact and be a financially sound, look no further than solar projects in Africa.
SunFunder, a crowdfunding platform helping social enterprises secure loans for solar projects in off-grid communities, has announced a second loan being 100% repaid this month.
The campaign was launched a year ago by SunnyMoney, a social enterprise owned by UK-based charity SolarAid that sells solar lights in Malawi, Zambia, Kenya, and Tanzania. It sought a $10,000 loan to purchase and sell close to 800 solar-powered lights in Eastern Zambia.
The impact: over 3,900 people have switched from dangerous kerosene lanterns to solar alternatives, saving over $90,000 in energy costs per year and increasing disposable income by 12 percent, allowing families to spend on other necessities such as food, health, and education.
This milestone achieved by SunFunder and SunnyMoney, along with another fully repaid project announced in May, is a testament to the bankability of solar projects in off-grid communities and is important to get big institutions behind these projects. As SunFunder explains:
“Getting big international finance institutions (IFI’s) like the World Bank behind off-grid solar sector is ultimately a winning scenario, because as the International Energy Agency has stated, we need nearly $1 trillion in cumulative investment to achieve universal energy access by 2030. The more we can use crowdfunding and community-backed approaches to prove that the off-grid solar sector is well worth the investment for big IFI’s, the better off the 1.3 billion unelectrified population will be in the coming years.”
SunFunder presents a strong case. Despite small and early successes (SunFunder launched in 2012), it has helped raise over $200,000 across 13 projects with a 100% repayment rate to date.
This video below demonstrates how SunFunder works.