New Study: Linking Off-Grid Solar Energy Companies to a Credit Reference System
However, until now, these companies operated independently from the financial sector regulations, which means that they rely on the customer data that they have at their disposal for making consumer-financing decisions, which can lead to high portfolio risks. Currently, there is no structured way of sharing data; therefore, customer credit data produced by the OGS companies will not be made available to other stakeholders.
With a special focus on Uganda, Energising Development (EnDev) and the GIZ Sector Project ‘Financial Systems Development’ (SV-FSE) assessed the opportunities and risks that could arise for customers, energy firms and others from linking energy companies to a formal Credit Reference System. The project partners emphasized the need to create a sound financial sector enabling environment. The paper can be downloaded from the following link.