NextEnergy Capital is working to raise a fund for renewable energy projects in Africa.  About 80% of the funds will be invested in infrastructure projects; the rest will be invested in early stage technologies with the goal of bringing them to the African market. The fund manager is already working with European Merchant Bank to develop a €18 million 6.5 MW photovoltaic project in South Africa. Check out the article to find out all the details on the investors and other plans for the fund.

There’s no denying that Africa presents a huge opportunity for renewable energy development. The continent is described appropriately as a “blank canvas,” since infrastructure is currently unreliable or nonexistent. Meanwhile, renewable energy is increasingly cheaper, safer, and more efficient. In addition, most Africans are not connected to the grid and rely on diesel generators, costing them $1.00 per kWh, while solar PV power would only cost $0.20 per kWh. The difference in adoption usually comes down to the upfront expenditure cost differentials (PV is more costly upfront, but cheaper on an average cost of energy basis), which is why such solutions should be supported by government subsidies to promote adoption. An interesting article coming from the Wall Street Journal, it offers a great summary of renewable energy in Africa.  

“African nations move closer to EU position at Durban climate change talks” by John Vidal and Fiona Harvey on The Guardian

Climate change talks are very relevant to clean energy development in emerging markets, as developing countries are holding higher stakes and having a greater influence. The UN’s Framework Convention on Climate Change in Durban, South Africa Conference of the Parties (COP17) wraps up this week. Propositions from COP17 include extending the Kyoto Protocol’s carbon reduction targets beyond 2012 and setting up “a new green fund ‘to keep Africa safe’ from climate change.” It’s very important that Africa plays a critical role in international talks as it is the continent that will be most deeply affected by climate change.  The Guardian’s overview offers a great overview of the highlights from the talk so far, and we’re looking forward to seeing the outcomes. (NB. This is only the second time the COP has been held it Africa. It was held in Nairobi, Kenya in 2006).

Econet Solar is a subsidiary of African mobile phone operator Econet Wireless. The subsidiary has launched a first-generation prepaid solar-powered home power station. It allows users to light their homes and charge their phones. Customers will pay for energy in a similar fashion to buying airtime. This is very similar to Simpa Networks’ Progressive Purchase Model, which actually allows users to work towards ownership.  Both solutions overcome the financial barrier of the up-front cost of the system.

The most important kind of Rich Person a startup hub can have is successful technology entrepreneurs that are looking to support new startups.  Often, this is subject to a chicken and egg dilemma. Without support, introductions, and investment from successful industry veterans it is a difficult path for startups to find success.  Kenya, however, seems to be on the verge of graduating its first class of successful technology entrepreneurs.  Organizations like Kenya Data Networks, the Wananchi Group, Seven Seas Technologies, Craft Silicon, Cellulant, and Ushahidi have all been successful and are looking to support younger entrepreneurs.  In various ways, the founders of these companies are looking to invest in entrepreneurs and offer various support structures to help them grow.

Beyond just investment capital, support is offered to the tech community in the form of Njeri Rionge's Business Lounge, Ushahidi's iHub, the Plexus Group, 88mph, the m:Lab, and any of the other half dozen incubators currently in the works.  It is on the back of these support structures that young, creative entrepreneurs will be able to leverage the necessary funds, mentorship, and connections to launch successful tech enterprises.

After last week’s regional focus on Africa, this week we focused our reading on social enterprise and development in Latin America.