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FeatureSDG 17

Green Banking Training

In cooperation with the GIZ programme DIAPOL-CE and RENAC GmbH, GBE Senegal offers a training for 100 employees from the financial and renewable energy sector. The three-month online training imparts basic knowledge and provides information on market potential and financing models. In this way, GBE aims to initiate more tailored financing from the banking sector.

Micro, small and medium-sized enterprises (MSMEs) have a much harder time obtaining loans and investment funds than large ones. According to a World Bank study from 2020, this is one of the biggest obstacles for Senegalese companies. Moreover, if they receive financing at all, they have to provide much higher guarantees than large companies.

These aspects have drastic consequences for the Senegalese green energy market. There are few financing options for MSMEs, especially in rural areas, that want to invest in renewable energy. The evaluation criteria are challenging, also because banks rarely accept the installed equipment as collateral. In addition, many financial institutions are overburdened with the careful examination (due diligence) of renewable energy projects. In short, the Senegalese financial sector still knows too little about both the technology solutions and the profitability of renewable energy projects.

In this context, the GIZ programmes DIAPOL-CE and Green People’s Energy (GBE) Senegal have developed a “Green Banking Training” in cooperation with RENAC GmbH. This aims to enable financial sector employees to improve their knowledge of the renewable energy sector and to develop suitable financing solutions for renewable energy and energy efficiency projects.

The training teaches participants key principles of climate and MSME finance, evaluates with them the economic viability of different business models and demonstrates the bankability of investments in decentralised renewable energy systems and energy efficiency . Furthermore, the training explains key elements for a thorough assessment of financing applications in the renewable energy sector and provides an overview of suitable financial products. 

Over 200 interested people, primarily from Senegalese financial institutions and project developers from the green energy sector, have applied for the 12-week online course. The course will start on 1 December 2021. 100 participants can take part in this first training.

The participants come from all renowned financial and microfinance institutions in Senegal. The good news for everyone else: GIZ DIAPOL-CE, Green People’s Energy and Renac GmbH want the training to take place regularly.

Via public tender, they have selected two institutions, the Observatoire de la Qualité du Service Financier and the Bureau de Mise à Niveau, to offer the Green Finance Training repeatedly in the future. For this purpose, RENAC will train selected trainers from these institutions in a train-the-trainer programme in spring 2022, so that they can sensitise other bank employees and train them for the issues of the green energy sector.

For more information on GBE Senegal’s activities in the area of access to finance, see the articles:

Discussing the financing of renewable energy projects for productive use in Senegal and
Only a good business plan attracts investors