Impact of Access to Financing on the Development of Renewable Energy Enterprises and Technologies: The Case of E+Co in Tanzania
Like any other small and medium enterprises (SMEs), small renewable energy companies find difficulty to access finance from most of the local financial institutions. E+Co is one of the global financial institutions that have attracted a big number of renewable energy companies in Tanzania into their portfolios. The objective of this study is to assess the success and impact of E+Co’s financing intervention on the development of benefiting companies and renewable energy technologies. The study has also designed and proposed a financing business model that is deemed to be suitable for adoption by local financial institutions to serve small Tanzanian entrepreneurs. The study has used a Judgmental or Purposive sampling method and the sampling frame has included E+Co, beneficiaries of E+Co financing, governmental and non-governmental organizations with interest in renewable energy activities in Tanzania and financial institutions operating in Tanzania. Findings of the study reveal that there is a direct relation (positive impact) between the financing provided and the development of renewable energy technologies but more importantly, financed companies have been able to grow, reach and serve more people and attain profitability as a result of the financing intervention. The study has revealed some key issues to be addressed if the financial sector is really to be made to support small renewable energy entrepreneurs. The study has also come up with a number of recommendations for that needs to be addressed if local financial sector is really to be expected to support small renewable energy entrepreneurs.
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