1. GIZ Financial Systems Development (FSD)
supporting KPI work in the off-grid energy sector
Side Event on PAYGo Financial Analysis and Reporting Initiative
Sebastian von Wolff
USC, 6th of November 2018
Kigali, Rwanda

2. GIZ - Facts and Figures
Federally owned enterprise for sustainable development
Promoting complex reform and change processes by technical advisory and capacity development
Main client is the Federal Ministry of Economic Cooperation and Development (BMZ)
Client base also includes other German ministries, international donor organizations, partner country governments and private foundations
GIZ employs more than 17,000 staff members, is active in over 130 countries with offices in 87 countries; business volume > € 2bn

3. Financial Sector Development (FSD) project examples
Ukraine – Financial Sector Stability
Support to reform Public Finances
Technical assistance to strengthen risk management and supervision
Introduce International and European regulatory standards
Costa Rica – Green Finance
Reduction of CHG Emissions in the Coffee Sector
Development of bankable projects
Support investments in low-emission technologies via:
Credit Fund and financial incentive mechanism
Laos – Microfinance
Microfinance Services in Rural Areas
Supervision
Development of village bank structures
Improve Financial Literacy
Green Finance
Financial Sector Stability
Microfinance
Insurance
Rural, Agriultural, and SME Finance
Egypt – SME Finance
Promotion of Non-Bank Financial Services for SME
Development of regulatory and supervisory conditions
Training and product development
Facilitating Start-Ups
Ghana – Insurance
Regulation of Insurance Markets
Development of a regulative framework
Market supervision
Targeted educational campaign
Improvement of the consumer protection
Increasing customer orientation of insurance providers

4. Why do we support the KPI work (and go further…)
Energy
Financial Systems Development

5. Various reasons, for example
Off-grid energy finance requires common standards
Energy experts and financial sector experts don’t necessarily speak the same language
We want local companies and SMEs play a stronger role
Significant increase in terms of local debt financing requires local banks’ involvement plus SME support and training
Local lenders are conservative and require training
Won’t change unless local lenders get familiar with PAYG business model
GIZ FSD sees both: a high development impact but also risks!

6. New activities underway
Strengthen interdisciplinary energy (and digital) finance team within GIZ
Integrate FSD expertise into several of the existing or new energy projects of GIZ
Increase efforts on consumer protection and responsible finance
As part of the new initiatives of the German government (Compact with Africa, Marshallplan, etc.) we‘ll also seek to promote SMEs in the off-grid value chain (e.g. distributors)
Already implementing: GOGLA cooperation and support

7. Our current work with GOGLA
Side event Abidjan: „Financing the Off-grid Sector: Turning Portfolio into Finance” issue paper on securitization  Action paper
Analyzing the impact of off-grid solar lighting and electrification on jobs and income
Advancing financial performance measurement
Local financial sector involvement in the off-grid solar industry
Together with GOGLA, the GIZ sector program Financial system development is currently implementing several measures in the off-grid energy sector. 1)
2) The off-grid solar electrification and lighting industry represents a high growth and high impact market.
Providing better information to various stakeholders on employment effects created in the sector.
3) Lack of data poses barrier to investment. The primary aim of the Project is therefore to reduce barriers to investment in the off-grid solar sector, through improved performance reporting.
This overall objective is defined by the following benchmarks:
- To provide and operationalize a platform for data collection for aggregated public reporting in two countries: Uganda and Cote d‘Ivoire;
- To lay the framework for building an anonymous portfolio performance index for the SHS sector.

8. Thank you for your attention!
Thank you for your attention!