Southern African Renewable Investment and Growth (SOARING) Programme

To finance their climate action plans, countries in southern Africa also need to draw on funds from the private sector. This applies to agriculture in particular, where SMEs have a significant role to play. The project is developing a financing programme for SMEs who are focussing on the use of alternative sources of energy in agriculture, while also helping partner countries to mobilise both public and private sources of funding. The project achieves this by analysing supply, demand and general conditions applicable to SMEs, as well as options for off-grid supply to rural and suburban areas. While investigating options for mixed financing, the project is also collecting data, tracking business developments and surveying local socioeconomic effects. A methodology and a strategic approach for investment bundling are also being developed, as are corresponding prototypes for commercial banks. Model project results can also be transferred to other sectors of the economy.

Project data

Countries
Tanzania, Zambia
IKI funding
3,299,199.00 €
Duration
06/2019 till 12/2027
Status
open
Implementing organisation
Renewable Energy and Energy Efficiency Partnership (REEEP) - Austria
Political Partner
  • Ministry of Energy and Minerals - Tanzania
  • Ministry of Finance - Zambia
  • Ministry of Mines and Energy - Namibia*
Implementing Partner
  • Renewables Academy AG (RENAC)
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State of implementation/results

  • Through SOARING’s capacity building and stakeholder engagements, the program was successful in fostering partnerships between microfinance institutions and clean energy technology suppliers / distributors in Tanzania. Such partnerships have not existed before. Even without accessing SOARING Funds, MFIs and distribution partners have started piloting the provision of loans for clean energy technologies (ie. Solar irrigation, Fishing Lanterns, E-Bikes).
  • The program team would aim to further strengthen these partnerships also through the utilization of the SOARING Fund as a credit enhancement instrument, thereby ensuring sustainable financial terms for end-user financing. In combination with the World Bank´s credit line this support will unlock the microfinancing sector for end-user financing of renewable energy technologies. Together this will solve the liquidity issues faced by MFIs championing financial solutions.
  • The SOARING team has drafted a term-sheet that the Program team has drafted with a MFI based in Tanzania to support its plans. This would serve as a draft to also partner with and support additional (Micro-) Finance Institutions in the country. This arrangement would have the potential to benefit much more than 10 SMEs in Tanzania alone.
  • The draft term sheet with the MFI in Tanzania has resulted in a signed Guarantee Agreement. The MFI has applied for a loan to be covered by the Guarantee Fund, which has been approved by BMWE.
  • The SOARING program website is currently being set up and should be launched by the end of Q3 2025.

Latest Update:
12/2025

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