Over 600 million people across Sub-Saharan Africa still lack electricity, with Nigeria alone accounting for 85 million of the energy-poor. This week a groundbreaking partnership between GreenMax Capital Group Group’s Green-for-Access (G4A) facility and Lapo Microfinance Bank demonstrates how innovative financing can transform this landscape—and why such solutions are now essential for achieving universal energy access. Traditional energy financing has been trapped in a vicious cycle: financial institutions view energy access lending as too risky, while energy companies struggle to reach customers who can’t afford upfront payments. The G4A-LAPO partnership breaks this cycle through first-loss guarantees that fundamentally reshape risk perception.

The first-loss guarantee from GreenMax allows LAPO to commit more deeply—targeting 15% of their lending portfolio to renewable energy. This represents a dramatic shift from traditional risk models, where microfinance institutions typically avoid energy lending entirely. By absorbing initial default risk, G4A enables LAPO to confidently finance ₦2.25 billion ($1.5 million) in renewable energy transactions, reaching 2,453 customers in its first phase. This isn’t just risk-sharing—it’s risk transformation that makes energy access investable. The partnership’s focus on productive-use technologies—solar-powered freezers, cold rooms, e-mobility solutions, and productive-use equipment—represents the next frontier of energy access. When a fish processor in Lagos can afford a solar-powered cold room, she’s not just gaining electricity; she’s building wealth through reduced post-harvest losses and extended selling seasons. The model introduces vetted delivery partners—Baobab+, Koolboks , Eja-Ice Ltd, and SunKing—whose customers become eligible for LAPO financing.

This ecosystem approach addresses a critical weakness in energy access initiatives: isolated pilots that struggle to scale. By embedding financing into existing distribution networks, the partnership creates sustainable growth platforms rather than demonstration projects. The partnership’s projected impact—over 1 million people benefiting, 20,000 metric tonnes of GHG reduction, and significant health improvements—demonstrates how innovative financing can achieve multiple development goals simultaneously. But this is just the beginning.

To meet SDG7, affordability and access must go hand in hand, this partnership is not just financing energy—its catalyzing local ecosystems. G4A’s broader vision to catalyze over $1 billion in climate-aligned financing across Sub-Saharan Africa by 2030 reflects an urgent reality: incremental progress is insufficient. At current electrification rates, Sub-Saharan Africa won’t achieve universal energy access until the 2080s—a timeline incompatible with both climate goals and human development imperatives. Innovative financing mechanisms offer a pathway to dramatically accelerate this timeline, but only if deployed systematically across multiple markets.

The G4A-LAPO partnership offers critical insights for scaling innovative energy access financing across Africa:

1. Build institutional capacity, not just transactions. LAPO’s commitment to dedicate 15% of its portfolio to renewable energy represents fundamental business model transformation—exactly the institutional change that creates lasting impact.
2. Leverage existing infrastructure. By working through established microfinance networks rather than creating parallel systems, G4A maximizes existing customer relationships, credit assessment capabilities, and distribution channels.
3. Finance ecosystems, not just technologies. The partnership’s emphasis on productive-use appliances and economic value creation reflects mature understanding that sustainable energy access requires sustainable business models for both providers and users.

This is a unique partnership that we are happy about because of the different perspectives and players involved to ensure we execute. This collaborative approach—rooted in local trust, global climate goals, and shared commitment to unlocking prosperity through power—signals a fundamental shift in how clean energy is financed. As G4A expands into Kenya and Uganda, the model demonstrates that innovative financing isn’t just helpful for Africa’s energy access challenge—it’s essential. With over 600 million people still waiting for electricity, the question isn’t whether Africa can afford to invest in innovative energy access financing, but whether the continent can afford not to. The future of energy access in Africa depends on widespread adoption of financing innovations that make clean energy not just accessible, but inevitable. The G4A-LAPO partnership shows this future is not only possible—it’s already beginning.