A new study has highlighted the importance of crowdfunding in raising finance for energy needs around the world.
Energy 4 Impact's latest instalment in a series of reports from its Crowd Power Program on energy access-related crowdfunding in sub-Saharan Africa and Asia said the strongest growth has been identified in debt and equity crowdfunding.
The Crowd Power: Can the Crowd Close the Financing Gap? Gap report examines the role and use of crowdfunding by start-ups and non-profits raising capital.
The study found that debt crowdfunding by enterprises, mostly those selling pay-as-you-go solar home systems, grew strongly in 2016 and raised more than $2 million (Sh207 million) across 26 loans, representing a 10-fold increase on those made in 2015.
The report suggests that debt crowdfunding is the most scalable method for off-grid energy space.