Feasibility and fund design for DFID Energy Access Debt Fund


DFID recognized a gap in debt financing for solar home system (SHS) companies in Africa and retained OCA to design a new blended finance fund to address this gap. The fund’s goal was to support SHS companies to reach more off-grid, underserved consumers in Africa

Our Process

Our Approach was to:

  • Conduct extensive market research, including consultations with >50 major players in the SHS and related industries, to identify market trends, financing needs, and to map existing funders
  • Led a fund structuring process to propose multiple options for fund architecture (to support participation by governments, donors, and the private sector), fund manager remuneration, debt financial products the fund could provide, and potential returns on DFID and its co-funders’ capital
  • Developed a fund financial model to test different scenarios and compare the impact of various strategies
  • Prepared various design options for a technical assistance vehicle that would be provided alongside the fund, including assessing potential delivery approach, management and governance, and impact tracking

We produced a detailed sector analysis and market map to serve as the basis for our strategy and fund development. We then delivered a fund strategy report and financial model proposing various options for the fund’s structure, together with our recommendations and financial implications of this approach. These documents included our review and recommendations around the technical assistance facility design.

On the basis of our work, DFID approved funding for the Energy Access Debt Fund, which is now being implemented and managed by the Commonwealth Development Corporation (CDC).