This report is a consolidated report of three market studies conducted in Kenya, Uganda and Tanzania to examine how GVEP-International could work with Financial Institutions (FIs) and Micro and Small and Medium Enterprises (MSME) so as to increase the access for investment finance and stimulate demand for energy products. It is part of a USAID funded Energy Sector Grants Program project. The study generated data from conducting desk reviews and structured interviews with a variety of financial institutions. Among the institutions interviewed were Micro Finance Institutions (MFIs), Savings and Credit Cooperatives (SACCOs), Banks, Microfinance Wholesaler, Microfinance Advisory/Consultancy Organization, energy product suppliers and energy MSMEs. The report expands on the current barriers to scale up lending for energy enterprises, which include, a) a lack of available financing at all levels; b) inadequate capacity within the lending institutions; and c) a lack of awareness of the technologies within the financial institutions as well as the consumers. While this report touches on all three of these constraints, the focus will be on the first constraint the lack of available financing and the steps necessary to stimulate the supply side financing for energy MSMEs.
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