Renewable Energy Financing Case Study: Enokwe Finance Limited

Key Challenges Solutions
Difficulty in obtaining funds for borrower seminars Government or international organizations could provide grants or funding for borrower seminars to educate borrowers on the benefits of renewable energy and responsible borrowing.
Sourcing reliable companies for borrowers to buy equipment Microfinance institutions (MFIs) could collaborate and pool their resources to source reliable companies that sell equipment. MFIs could partner with renewable energy companies to offer financing to their customers.
Impact Witness Statements
About 75% of those who received loans for alternative energy machinery, particularly pumps, have been successful in their repayments. “Enokwe Finance Limited provided me with a loan of TSh 6.5 million to buy a solar pump, which made a significant difference in my ability to access water for my farming and livestock rearing activities,” said Mr. Juma Makole, a farmer and livestock rearer.

Mr. Makole is now able to farm his garden and provide water for his livestock throughout the year, while Ms. Penina Boto, a small-scale farmer and entrepreneur, has experienced significant productivity increases since receiving a loan for a solar panel and water pump.

“Enokwe Finance Limited’s support has transformed my life and my business. I am now able to produce more crops, sell them at a better price, and provide for my family. I am grateful for the opportunity to access renewable energy solutions through this project,” added Ms. Boto.

Partnership Funding
Enokwe Finance Limited has partnered with The Tanzania Association of Microfinance Institutions (TAMFI) to advocate for renewable energy financing, increasing the number of end-users for renewable energy financing. The Tanzania Horticulture Association (TAHA) has also collaborated by providing valuable agricultural advice and market connections. The Energy Access project, supported by the C.S. Mott Foundation, has enabled TAMFI to promote renewable energy financing for microfinance institutions (MFIs), which has increased awareness and provided capacity building for institutions like Enokwe Finance Limited to offer renewable energy loans to end-users.