BRILHO programme trains companies in credit management in Mozambique's PAYGo solar sector

This was an initiative carried out as part of the implementation of the BRILHO programme, which benefited five companies in the off-grid energy sector. The training, which took place on 18 and 19 September 2023, focused on credit management and came about as a result of the analysis that the BRILHO programme has been carrying out on companies, consisting of the perception of practices in terms of credit allocation and management on the part of companies that supply solar products and services in off-grid areas.

One of the shortcomings identified in the process of selling and charging for solar systems through PAYGo has to do with the lack of detailed analysis of the customer's capacity versus the package they wish to purchase. This has resulted in constant difficulties on the part of customers in making payments on an ongoing basis, since solar systems are sold to off-grid communities and many of them have low purchasing power.

"Companies, before supplying systems or signing contracts with communities, must realise the customer's ability to pay back the credit and also support customers in choosing the most appropriate package, according to their purchasing power, to avoid the customer later being left without services." - Said Willem Nolens, PAYGo Lab facilitator

During the training, the companies were challenged to create an action plan to improve their credit management practices in order to better serve their clients and provide constant and growing returns to their investors.
Through this technical assistance to companies, SNV-BRILHO hopes to provide them with tools for better credit management and to guarantee the provision of quality services to the community.
BRILHO is a 5-year, nationwide programme that will catalyse the off-grid energy market in Mozambique by promoting and supporting business initiatives that can provide clean and affordable energy solutions to the population and companies in a competitive and sustainable manner.

The programme is funded by the UK Foreign, Commonwealth & Development Office (FCDO) and the Swedish International Development Cooperation Agency Sida, and implemented by SNV. Since its inception, the programme has benefited more than 1.6 million Mozambicans with access to energy through solar home systems and green mini-grids for electrification, and improved cooking solutions.