Ainsley Lloyd , MEM

2011 TRI Fellow in Ghana

Making Solar Affordable at the Bottom of the Pyramid: The Pitfalls and Progress of Energy Lending in Ghana

This project assessed the impact of energy microlending for both borrowers and lenders through the lens of Energy in Common, a non-profit pioneering these loans in Ghana. After creating a structured borrower survey, I spent the summer traveling throughout Ghana, speaking with individuals that have acquired solar products via Energy in Common microloans. I also spent time with microfinance institutions that administer energy loans on the ground to understand energy loans from a lender perspective. From MFI meetings and daily observation it is apparent that difficulties exist in energy loan implementation, as poor roads, delays, cyclical income and distance complicate payment collection and product delivery. However, preliminary analysis of borrower surveys suggests that loans for energy products have reduced both kerosene use and travel time and expense for rural borrowers.