Somalia Off-Grid Solar Grant Facility Managed by International Bank of Somalia (IBS)
This grant facility, managed by International Bank of Somalia (IBS), aims to provide Off-Grid Solar solutions to households and businesses in Somalia. The facility seeks to address challenges such as lack of access to finance, low-quality products, and inadequate distribution infrastructure. With a focus on benefiting over 10,000 households and 100 enterprises, the project aims to improve access to Lighting Global quality verified Off-Grid Solar systems in the region.
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Somalia Off-Grid Solar Grant Facility Managed by International Bank of Somalia (IBS)
1. International Bank of Somalia i. IBS at a glance ii. Roles and responsibilities (as grant manager) 2. Somalia Off-Grid Solar Facility -the Facility i. Introduction ii. Facility Management structure iii. Implementation timeline (workplan) Content 3. IBS Value Addition
1. International Bank of Somalia (IBS) i. IBS at glance
ii. Roles and Responsibilities The Grant operationalization, launch, and management of the Facility. Manager will be responsible for the successful Development of the project implementationmanual (PIM) Based on the Facility objectives and ongoing guidance from FGS, Development of application processes and templates 1. International Bank of Somalia (IBS) Coordination of FacilityRollout To solicit a satisfactory number of high-quality applications for the Facility Work with ministry and other stakeholders Stakeholder consultations, project launch, request for RBF Capacity building Due diligence and contracting
ii. Roles and Responsibilities The Grant operationalization, launch, and management of the Facility. Manager will be responsible for the successful 1. International Bank of Somalia (IBS) OngoingFacilityOperationsManagement Day-to-day management of Facility operations Facility performance and milestones Fund disbursements Monitoring and evaluation Ongoing support forSSPs Quarterly reporting
Introduction to Facility The Market Lack of access to finance Somalia Off- Grid Solar Grant Facility Low quality products, Shortage of Skilled labour Insufficient consumer knowledge and marketing, Inadequate distribution infrastructure, Lack of warranties and after-sales services Inadequate policies and procedures
Introduction to Facility Objectives Beneficiaries 10,750 households, i. To support households and Small and Medium Enterprises (SME) access Lighting Global (LG) quality verified Off-Grid Solar (OGS) systems across Somalia; 56,950 people - 28,350 are expected to be women. Somalia Off- Grid Solar Grant Facility 100 Enterprises (businesses) i. To support the growth of earlier-stage and/or local solar companies where possible; Small and Medium ii. To enable distributors to sell products on a pay-as-you-go (PAYGO) basis where possible, thus increasing affordability; Minimum Ownership. 20% Female iii. To promote off-grid energy access in remote and rural areas; and 9.4W of generation capacity to each household reached, iv. To set a foundation for high-potential solar operators to access future funding to further scale operations in Somalia ~0.1 MW in expected new capacity.
Introduction to Facility Facility Structure Somalia Off- Grid Solar Grant Facility Expansion RBF: o Results-based financing (RBF) to Off-Grid Solar distributors o Capital to build internal capabilities invest in sales and distribution infrastructure, pilot new and innovative businesses and customer service models and build up liquidity Seed RBF: o Automatic upon singing contract o Up to 20% of total approved funding upfront. o Use for all eligible expenses In preparation for RBF implementation
Introduction to Facility Eligibility Minimum Eligibility Criteria i. Establishment, legality, and experience Somalia Off- Grid Solar Grant Facility ii. Business infrastructure:- business plans, adequate management team, adequate logistics, distribution and warranties and aftersales services. iii. Quality products (Lighting Global Verified) iv. Exceptional Criteria:- Integration of policies in gender balance, environmental and social safeguards, servicing rural and remote community.
Introduction to Facility Eligibility Eligible Uses i. Lighting Global (LG) verified solar products, ii. Training of staff, iii. Expenses related to Marketing and consumer awareness Distribution infrastructure, Development of PAYG consumer finance models, Development of processes and equipment for after-sales maintenance Somalia Off- Grid Solar Grant Facility The principal condition for all expenses and uses for the facility is that it must be in concordance with and be linked to demonstrating expansion of business models (in terms of geography and market segments) and connections to households .
Project Management Structure Key Stakeholders Somalia Off- Grid Solar Grant Facility IBS Ministry of Energy and Water Resources (MoEWR) Independent Verification Agency (IVA)
Project Management Structure Implementation procedure Request for Expression of Interest (REOI) o Eligibility, evaluation and shortlisting o Information Webinar Capacity building -training o Pre-proposal Proposal submission Due diligence, contracting and seed grant payments Incentive request, verification and RBF Payments Monitoring and Evaluations Project reporting Somalia Off- Grid Solar Grant Facility
Leveraging IBS strengths Sourcing of LG verified products Business financing Business development support Continuous support IBS Value addition Quality Assurance Models Secure transactions Branch Network MSME Confidentiality
