BARCELONA — Despite the influx of innovative financing models in recent years, there are still calls to find further ways to finance development efforts. Last year, a report by the European Commission high-level group on sustainable finance recommended enabling individual investors to support development opportunities as one potential solution.
After Kiva helped to pioneer this type of model, new platforms have emerged with a particular focus on solar energy. According to the European Commission, which supported a project of this kind in Europe, crowdfunding platforms for renewable energy have produced particularly impressive results.
Now, groups such as Energise Africa say they have the answer for frustrated investors, as well as for small Africa-focused solar businesses — but some industry observers are skeptical and warn that this type of lending comes with risks.