Arc Finance has established partnerships with a number of organizations that have specialized technical and local expertise to carry out the goals of REMMP in Haiti, India, Kenya and Uganda.
REMMP Partner in Haiti
Sogexpress specializes in money transfer payments and is the leading Western Union partner in Haiti, a country with one of the lowest electricity access rates in the world. With only 26% of the Haitian population connected to the grid, remittances offer an innovative new solution for financing the purchase and distribution of energy devices. With the support of USAID and FOMIN/IDB, Arc is working with Sogexpress to both scale a remittance-based platform, which allows Haitians in the diaspora to directly provide solar products to their families in Haiti in lieu of cash transfers, and expand cash sales of solar products using Sogexpress’ network of flagship stores across the country.
REMMP Partners in India
Bandhan Konnagar is a not-for-profit society that is part of the Bandhan Group, and its sister company, Bandhan Financial Services Ltd. (BFSL), is the largest MFI in India. Bandhan provides microfinance services to 7.6 million borrowers, (all women), through 2,022 branches across 22 Indian states. Arc is supporting Bandhan under REMMP to develop and launch a new multi-state, energy-focused subsidiary, providing both sales and credit for its clients.
Indian Grameen Services (IGS) is a registered not-for-profit company that serves as the action research, pilot testing and incubation arm of the BASIX Group, one of India’s largest financial and business development institutions focused on the poor. Under REMMP, Arc has partnered with IGS to launch Vayam Renewable, which markets, sells and finances energy products for low-income consumers in rural communities, through REMMP, and trains and supports a network of village-based solar retailer-technicians.
Friends of Women’s World Banking-India (FWWB-I) is an apex organization that provides loan support and program development assistance to a network that currently includes 25 microfinance and community-based organizations located throughout India. Arc Finance is partnering with FWWB-I under REMMP to create and grow a revolving credit facility for clean energy. Arc is also providing technical assistance to several FWWB-I MFI sub-partners to finance a range of energy services by the end of 2015.
Milaap is an online crowdfunding platform that supports the growth of microcredit products such as energy, water, sanitation, and education loans by providing inexpensive, flexible capital to Indian MFIs through the crowdsourcing of funds. Arc Finance is partnering with Milaap under REMMP to establish a low-cost revolving credit facility for innovative energy companies and MFIs engaged in energy lending. Arc is also providing technical assistance to Milaap’s MFI sub-partners to finance a range of energy services including solar, efficient cookstoves and microgrids.
Simpa Networks is an energy company that markets high quality solar home systems (SHS) with a proprietary metering technology that are sold on a “progressive purchase” basis in Uttar Pradesh, India. Progressive purchase enables off-grid consumers to pay for solar in flexible increments over time. Arc Finance was Simpa’s first investor and is currently partnering with Simpa under REMMP to scale its “progressive purchase” business model.
REMMP Partner in Kenya
MamaMikes a Kenya-based goods transfer company that offers the Kenyan diaspora a way to send both material assistance and gifts to families in Kenya. Since 2014, MamaMikes has offered solar products and improved cooking solutions on its website for purchase by diaspora and local customers. Arc Finance is partnering with MamaMikes under REMMP to refine the existing business model, expand online and offline marketing activities, and scale up MamaMikes clean energy product sales.
REMMP Partners in Nepal
Civil Bank is a commercial bank that is registered as a Class “A” financial institution, with a loan portfolio of US$225 million. The bank is committed to developing an urban solar lending program and has experimented with financing solar systems for urban households. Under REMMP Nepal, Arc is supporting NMB to unlock energy lending through its network of MFIs and other local financial institutions.
The Central Renewable Energy Fund (CREF) is a Government entity whose goal is to deliver subsidies and credit support to the renewable energy (RE) sector in Nepal. CREF is the main financial enabler for helping deploy Renewable Energy Technology (RET) in rural areas. The CREF performs two principal activities: 1. The issuing of subsidies to qualified RET installers and other authorized recipients of subsidy funds, and 2. facilitating the provision of credit facilities to households and communities that wish to acquire RETs. Under REMMP Nepal, Arc will partner with CREF and its partner banks, which in turn will work with their network of micro-finance and non-bank financial institutions. Under the partnership, Arc will provide technical assistance to help the MFI partners develop and roll-out relevant financial products for Nepali end users.
Nepal Merchant Bank is a commercial bank that is registered as a Class “A” financial institution, with a total loan portfolio of US$272 million. NMB is a participant in the Government-run urban solar program and hopes to be a pioneer in financing MFIs that offer energy loans. Under REMMP Nepal, Arc is providing technical assistance to NMB to enhance its role as an apex financier and to its MFI sub-partners as they build their energy lending portfolios.
REMMP Partner in Uganda
SolarNow is a private distribution and service company that is delivering improved solar access to poor rural consumers in Uganda. Arc is partnering with SolarNow to support the scaling of its franchise-based solar retail business. SolarNow offers an in-house credit facility for a range of modular solar home systems and low-voltage appliances. Under REMMP, Arc Finance provided funds to upgrade SolarNow’s Management Information System to handle its credit facility, and arranged a DCA loan guarantee to allow access to local capital markets.
REMMP Sub-Partners in India
Annapurna is a registered microfinance institution based in Odisha, India. Founded in 2010, Annapurna’s mandate is to encourage women in marginalized communities to gain social and economic empowerment. Arc is providing Annapurna with strategic advice and technical assistance to help scale its energy lending business.
Adhikar is a registered microfinance institution based in Odisha, India. Founded in 2004, Adhikar’s mission is to ensure that poor communities access high quality financial services, with transparency embedded into service delivery. Arc is providing Adhikar with strategic advice and technical assistance to help scale its energy lending business.
Dhosa Chandaneswar Bratyajana Samity (DCBS) is a registered microfinance institution based in West Bengal, India. Founded in 2003, DCBS’ mission is to transform the lives of the rural poor by providing effective, transparent and sustainable financial services that emphasize participatory approaches. Arc is providing DCBS with strategic advice and technical assistance to help scale its energy lending business; DCBS’ goal is to “solarize” its entire client base by the end of 2015.
Grameen Koota Financial Services Pvt. Ltd. (Grameen Koota) is a registered microfinance institution based in Bangalore, with services focused on the rural poor and low-income households, particularly women. Arc is providing Grameen Koota with strategic advice and technical assistance to help develop its growing energy lending business.
Jagaran is a registered microfinance institution based in West Bengal, India. Founded in 2010, Jagaran’s mission is to economically empower marginalized communities through equitable and transparent financial services. Arc is providing Jagaran with strategic advice and technical assistance to help scale its energy lending business.
Mahashakti Foundation (MSF) is registered microfinance institution known as Mahashakti Inclusive Financial Services Pvt. Ltd. MSF is based in Odisha, India, and provides a range of services to “poor and downtrodden communities.” MSF works toward improving health and education, expanding renewable energy and sustainable community development, and providing microinsurance and microcredit. Under REMMP, Arc is providing MSF with strategic advice and technical assistance to help scale its energy lending business.
Utkarsh Micro Finance Pvt. Ltd. (Utkarsh) is the registered microfinance arm of Samutkarsh Welfare Society, a registered not-for-profit organization based in Varanasi, India, that seeks to support underprivileged and underserved populations through financial and non-financial services. Arc is providing Utkarsh with strategic advice and technical assistance to help develop and scale its energy lending business.
Weaker Section Development Society (WSDS) is a registered microfinance institution that seeks to reduce rural poverty, especially among women, in the remote state of Manipur, India, through the provision of financial and non-financial related services. Arc is providing WSDS with strategic advice and technical assistance to help scale its energy lending business, in which WSDS provides small-scale credit for products including solar home lighting systems as well as financing for education costs. WSDS is also working with Arc to pilot a solar microgrid in a village outside Imphal.
REMMP Sub-Partners in Nepal
NMB Microfinance is registered as a “D” class financial institution and currently serves 15 districts and 30,000 clients in hilly and mountain regions in Nepal. NMB Microfinance was established in 2013 by Clean Energy Development Bank. With the merger between NMB and Clean Energy Development Bank, Clean Village is now majority owned (51%) by NMB. Under REMMP Nepal, Arc will help NMB Microfinance develop its energy loan portfolio and the Arc team will work closely with NMB team to implement an energy program.
Nepal Women Community Service Center (NWCSC) is registered as an NGO, with authority to perform MFI business. It is the first women specific grassroots non-governmental development organization in Nepal and was established in 1993 in Dang district of Rapti Zone. Run by a group of dedicated women volunteers, NWCSC strives for empowerment of women in rural areas through improving livelihoods, access to finance, education and health. NWCSC is a non-political, non-partisan and secular organization. It operates in five districts and has approximately 30,000 clients. Under REMMP Nepal, the Arc team is working with the NWCSC team to design and implement an energy lending program. NWCSC understands the need for energy in its area of operations and want to offer all its clients an energy solution.
Social Upgrade in Progress of Education Region (SUPER) is registered as an NGO with authority to perform microfinance activities. It was founded in 1993 in Dang district of Rapti Zone. Established as a developmental NGO, SUPER works towards empowerment of the deprived sector of the population in rural Dang areas through improving livelihoods, access to finance, education and health. Under REMMP Nepal, the Arc team is helping SUPER to design its energy lending program. Beyond solar lighting, SUPER is also interested in providing solar water pumping solutions to its clients.