PayGo Solar and Financial Inclusion

In Africa, 57% of adults have no bank accounts and are excluded from the financial system-a majority of whom are women. PayGo is a lifeline to the unbanked and unelectrified bottom of the pyramid households ena bling them to get credit to access affordable and reliable energy to help improve their businesses and livelihoods.

Most solar companies have further enabled their customers to conveniently pay their instalments through their phones, encouraging mobile money adoption and leading to a virtuous cycle of financial inclusion. For example, in Uganda, 16% of off-grid solar PayGo customers used mobile money for the first time to purchase their solar products.

The companies also include accessories such as bulbs, torches, mobile phones and productive use technologies such as shavers, coolers and irriga tion pumps to improve their customers’ livelihoods further.