Countries in the Economic Community of West African States (ECOWAS) are experiencing significant economic and population growth, which is driving ever-greater demand for refrigerators and air conditioners in the residential sector.
Cooling products are essential for the health, well-being and competitiveness of these economies, but they pose critical challenges in terms of energy consumption and impacts on the environment. Outdated products consume 2 to 3 times the amount of energy as efficient options available today, and they often contain refrigerant gasses that are harmful to the planet. A lack of information on product performance, inadequate policies, higher purchase prices, and a difficult access to financing, often prohibit adoption of energy-efficient and climate-friendly models.
BASE is working alongside UN Environment Program’s United for Efficiency (U4E) initiative and partnering with the governments of Ghana (Energy Commission, Environmental Protection Agency) and Senegal (AEME, DEEC). The programme aims to accelerate the switch to energy-efficient and climate-friendly refrigeration and air conditioning solutions in the region. After an extensive market assessment, the key findings were used to inform the design of the respective ECOFRIDGES financial mechanisms: Green On-wage financing (GO) in Ghana, and On-bill financing in Senegal. Since the inception of the project, both financial mechanisms have been operationalised and piloted with selected partner banks (CalBank, Ecobank, La Banque Agricole, Letshego Ghana), technology providers, and SENELEC, the power utility in Senegal.
In Ghana, ECOFRIDGES Green On-wage financing (GO) is a bank loan product designed to address the short to medium term financing needs of public and private sector employees through salary deductions to support the replacement of used but operational equipment with a certified cooling systems solution without the burden of upfront investment and the need for collaterals. The employer entity is the guarantor of the salaried customer’s loan and the mechanism reduces the need for stringent credit assessment and collaterals.
In Senegal, ECOFRIDGES On-bill financing gives consumers the option to finance the purchase through monthly payments on their electric utility bills, or other channels that meet the country-specific needs. A simple review of bill payment history, income and other basic information will be used to determine eligibility for financing. A financial tracking tool will be used to follow repayment progress and program operations to assure the viability of the mechanism over time.
ECOFRIDGES is building on lessons from Ghana along with taking inspiration from other successful policies and financial mechanisms to link its work with activities underway by ECREEE to spur the adoption of superior cooling solutions in the region. ECOFRIDGES includes complementary components, notably the proper disposal of used wp-contentliances, product testing, monitoring and verification, policy considerations, and awareness campaigns.
As of April 2023, ECOFRIDGES GO is proud to have achieved:
