Innovation Lab
10.01.2023
Report
10.01.2023
Report

Appliance Financing 3.0 Mini-Grid Innovation Insight – CrossBoundary Innovation Lab

Key Insights
Appliance Financing is the Innovation Lab’s first and most high impact prototype, with analysis conducted from data collected from 25 sites and over 12,000 connections
Our findings lead to a simple and obvious conclusion – cheap, reliable power enables income-generating activity and this drives consumption
These findings strengthen recommendations to expand and scale appliance financing of income generating machinery

Cheap, reliable power from mini-grids enables income-generating activity and is driving consumption, finds CrossBoundary’s Mini-Grid Innovation Lab in their latest Innovation Insight: Appliance Financing 3.0.

CrossBoundary’s Innovation Lab funded developers who deployed 326 income-generating machines on credit to customers across 25 sites in Nigeria, Kenya, and Tanzania.

Appliance financing 3.0 focused on income-generating equipment: electric pressure cookers, freezers/fridges, and grain mills were the appliances with the highest demand. Previous iterations of the appliance financing prototype showed that household appliances do not increase consumption.

However, customers covering a specific need in a community tend to generate a disproportionate demand for electricity resulting in significantly higher consumption.

In fact, the top 20% of appliance financing customers consume at least 16x more than their peers. This top 20% of appliance financing customers utilize equipment or machinery that meets specific community needs e.g. tailoring.

The results also showed that appliance financing allows customers to increase their consumption sustainably over a prolonged period of time, despite economic shocks.

Dive into the Innovation Insight from CrossBoundary’s Innovation Lab

CrossBoundary’s Mini-Grid Innovation Lab, part of CrossBoundary Group, is Africa’s first R&D fund exclusively focused on testing new business model innovations for mini-grids, designed to close the gap on the 618 million Africans who do not have power. The Mini-Grid Innovation Lab works with developers across the continent to test innovations to make mini-grids a more reliable and commercially viable solution.