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GOGLA’s report indicates that the off-grid market is slowly recovering following the Covid-19 pandemic.
- West and Central Africa saw increases in sales of off-grid solar lighting in H2 2020.
- The easing of lockdown restrictions contributed to the increasing sales.
GOGLA’s recent Global Off-Grid Solar Market Report shows that the off-grid industry is showing signs of recovery after the economic impact of the Covid-19 pandemic. The report analyses sales off-grid solar lighting products across East Africa, West Africa, Central Africa, South Asia, East Asia, and the Pacific in the second half of 2020.
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The report states that although sales are at the lowest level since 2015, about 3.6 million off-grid solar lighting products were sold, a growth of 19% compared to the first half of the year. About 470,000 appliances were sold, far below the pre-pandemic projected growth numbers. In East Africa, sales volumes were 10% below those recorded in H2 2019, while sales in West Africa and Central Africa increased by 19% and 40% respectively. In contrast to the gains in SubSaharan Africa, sales in South Asia remained 43% lower than those recorded in the second half of 2019. Low sales in India due to lockdown extension till August and difficulties faced by micro-finance institutions (MFIs) was a key factor in the low sales volume.
The report also indicates that easing lockdown restrictions in many countries in the second half of 2020 contributed to increased sales volumes compared to the first half of the year. The report estimates that the drop in sales has led to an estimated miss out of improved energy access for 10- 15 million people and 300,000 – 450,000 businesses.
The report suggests that policymakers, development partners and investors learn from the lessons from the Covid-19 dip and formulate approaches that support the industry and drive a sustainable post-covid-19 recovery.