Impact Study on Results-based Financing for Rural Solar Market Development in Tanzania

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Tanzania 2018/12/21

21 December 2018

As part of the overall evaluation of EnDev’s Results-based Financing (RBF) Facility, this impact study assesses how RBF has accelerated market transformation for picoPV products in Tanzania.

News RBF impact study 2018 Tanzania.JPG

News RBF impact study 2018 Tanzania.JPG

Evaluation of EnDev's RBF Facility

SNV has been implementing a Results-based Financing (RBF) project for rural market development for small solar systems in Tanzania since 2014. In line with the principle of RBF, the project offers financial incentives to selected solar suppliers and their retailers for verified sales of small-scale solar products in the Lake Zone and Central Zone of Tanzania.

The study, conducted by Particip GmbH, analyses the effects of RBF at four different levels of the picoPV market and value chain: aggregated market, suppliers, retailers and consumers.

Findings of the study

In summary, the analysis indicates that RBF:

  • Lowered key market barriers for picoPV supply in the target regions
  • Contributed to economies of scale and to overall market expansion, improving the efficiency of retail chains
  • Helped private sector actors learn about market opportunities and business models
  • Enabled and accelerated market entry and penetration
  • Accelerated end-user transition from small solar lanterns to solar home systems (SHS)
  • Reduced affordability constraints among consumers due to PAYGO modality expansion and testing
  • Had positive socio-economic impacts

The findings are based on a selection of eight business cases of solar suppliers. Data was mainly collected through key informant interviews with suppliers and other stakeholders, field visits in the Lake Zone, a field survey among more than 100 retailers conducted by the evaluation team, and an existing survey of RBF consumers.

Moreover, the impact study examines market transformation mechanisms in the theory of change and provides lessons and recommendations for further RBF implementations and future projects. All this can be read in the report.

Download the study

The study is available for reading online and download here.