Training manual for senior and middle level managers in energy financing
The Training manual for senior and middle level managers in energy financing aims to provide financial institutions with knowledge and skills on how they can tap into the huge financing opportunities that exist in the energy sector as well as informing them on the incentives that exist within their sector in energy financing.
In addition, the manual provides several financing options which organisations can adopt or customize. It also highlights issues that financial institutions should consider when developing an energy financing product and informs them on how to market energy.
Global Village Energy Partnership (GVEP) International has designed a program with support from the US Agency for International Development (USAID) to encourage financial institutions in East Africa to engage in the financing of energy enterprise development.
The main objective of this program is to introduce and work with financial institutions with the aim of increasing access to investment finance for the development of micro energy and small enterprises as well as to stimulate demand for energy product through consumer-financing initiatives. It is envisioned that the program will increase access to debt finance and use of credit guarantee schemes, and provide training to financial institutions in order to boost and speed up access to clean energy.
This training manual contains six modules:
Module 1 Introduction to energy:
This module explores the definition of energy and some of its uses.
Module 2 Business opportunities in energy for financial institutions:
This module highlights business opportunities that exist in the energy space that financial institutions could lend to as well as develop a portfolio for. It gives practical examples of energy businesses, therefore exposing financial institutions to energy enterprises they could finance. Additionally, the module provides insights to managers of financial institutions on the various incentives and benefits that exist for them in creating an energy loan portfolio.
Module 3 Financing options in energy:
This module introduces managers of financial institutions to various financing options that they could adopt for use in lending to energy entrepreneurs. The module also examines the success factors of energy lending. Additionally, this module provides an example of an energy portfolio in a financial institution.
Module 4 Developing financial products for the energy sector:
This module highlights financial product development process in an energy portfolio. This is a step-by-step process that clearly discusses the importance of each step and the role it plays in making the overall product development successful.
Module 5 Marketing an energy portfolio:
The module discusses concepts and methods of marketing financial products in the energy sector.
Module 6 Risk management for an energy portfolio:
This module explores the risk events that could occur in an energy portfolio and explores various ways of risk mitigation. In addition, it provides a step-by-step risk management framework.