As part of Energising the Green Economic Recovery response, EnDev focused on a set of instruments on the demand side, the supply side as well as the framework conditions. The targeted COVID-19 related interventions will be deployed both in the existing and fast track countries where the program encompases. Ethiopia is one of the countries included in the fast track category. 

SUPPLY SIDE

COVID-ASSIST- with the Development Bank of Ethiopia (DBE) Through a grant agreement with the DBE, EnDev will be able to provide grants to some 60 companies selling improved cookstoves (ICS) and solar equipment (PV). These bridging grants, amounting to EUR 5,000-25,000 per applicant, are given to companies to help with cash flow issues and to cover operating costs. Companies participate in a competitive process with certain eligibility criteria. In addition to the monetary support, the companies selected also receive business development support on topics like scenario planning, risk management, etc.

DEMAND SIDE

COVID-VOUCH – for market stimulation With a subsidy voucher scheme for eligible poor and vulnerable households, EnDev aimed at stimulating demand. Beneficiaries were identified in collaboration with the Ethiopian Government ‘Safety Net Program’; for the dissemination of vouchers, EnDev partnered with four Microfinance Institutions (MFIs). The MFIs sold the product coupons at a subsidized price to the eligible households. With these coupons the households could then buy products from ICS/solar suppliers. The suppliers in turn, cashed the coupon at one of the MFIs for the full price.

ENABLING ENVIRONMENT

COVID-BUILD- with industry associations Eleven national and sub-national industry associations with a focus on the ICS and solar market operation are acting as coordination and resource platforms during the COVID crisis. EnDev was able to provide these industry associations with technical, operational and material support. The technical support entailed for example, short-term experts, who assisted in leadership development, professional capacity, networking and visibility. Further, the associations were able to establish a fund for promotion and marketing activities to support the sector. COVID-HEALTH powering infrastructure EnDev aims to enable the electrification of rural health posts with smaller systems suitable for 600-2400 Wp. For this, 24 ‘deep rural’ health posts were identified which could serve as COVID-19 isolation centres.

Preliminary relief targets for Ethiopia

• 90 enterprises (50 ICS, 40 solar PV)

• 97,200 ICS, 13,920 solar PV systems

• 480,600 people reached

• 10 industry associations strengthened

 Fig Source: EnDev

Source: EnDev/Review 2020: Energising the Green Economic Recovery-Protecting Lives and Opportunities during the pandemic

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