Ability to respond to COVID-19 — AMDA Members: Ability to respond to COVID--19 All participants: Ability to respond to COVID--19 We can sustain this for 3-4 months We can sustain this for 3-4 months but then get into serious trouble but then get into serious trouble 26% We have a healthy financial 33% 34% We have a healthy financial situation and can sustain this situation and can sustain this 46% situation, even if lasting 6-9 situation, even if lasting 6-9 months months We have some bandwidth to We have some bandwidth to absorb absorb this but will struggle if it this but will struggle if it lasts for 21% lasts for more than 6 months more than 6 months 33% 7% We will be almost immediately in We will be almost immediately in financial trouble financial trouble On a scale from 0 to 5, how disruptive do you feel COVID – 19 currently is for your business? 4.3 - AMDA Members 4.0 - All Participants
AMDA MEMBERS Concern Areas — AMDA Members: Percentage of Ratings per Concern Area 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% HR Capacity Inventory Ceased Decreased Decreased Shortage of Challenges Loan Issues Increased Risk Possible Need Mgmt./ Supply Operations Demand Ability to Pay OPEX Attracting Management to Scale Down Chain CAPEX Funding Demand Pipeline
AMDA MEMBERS Concern Areas — 0% 0% 11% 11% 11% 0% 0% 0% 0% 11% 11% 11% 22% 22% 11% 11% 33% 33% HR Ceased Challenges Decreased Shortage 22% Capacity Operations Attracting Ability to of OPEX CAPEX Funding Avg: 3.3 Avg: 4.1 Pay Avg: 3.8 45% 22% Avg: 3.9 Avg: 3.9 56% 67% 56% 34% 0% 0% 0% 0% 0% 11% 11% 11% 11% 11% 22% 22% 22% 11% 11% Increased Inventory Risk Possible Need Loan 22% 45% Mgmt./ Decrease in to Scale Down Management Issues Demand Supply Chain Demand Pipeline 33% 56% 33% Avg: 3.1 Avg: 3.8 Avg: 3.4 Avg: 3.0 Avg: 2.6 22% 34% 45% 56% 11%
AMDA MEMBERS Areas of concern by rank — Top 3 Issues 1: Ceased Operations There’s a high degree of concern that the pandemic will potentially lead to ceasing of operations. 2: Ability to pay & decreased capex funding Most feel that end users will be affected and lead to decreased ability to pay; separately there’s concern that capex funding will dry up as investors adopt a “Wait and see” approach. 3: Shortage of opex & Inventory management / supply chain Issues Most expect a shortfall in ability to meet operational costs. This is possibly a direct consequence of decreased revenue due to end user’s low ability to pay. Similarly, there’s genuine concern as to how the pandemic will impact the supply of goods, logistics and working capital.
All Registrations Concern Areas — All Registrations: Percentage of Ratings per Concern Area 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% HR Capacity Inventory Mgmt./ Supply Chain Ceased Operations Decreased Demand Decreased Ability to Pay Challenges Attracting CAPEX Funding Shortage of OPEX Increased Risk Management Demand Loan Issues Possible Need to Scale Down Pipeline
All Registrations Concern Areas — 7% 9% 9% 14% 16% 16% 17% 19% 26% 7% 16% 23% 37% Decreased Decrease in HR Ceased Shortage 12% Ability to 21% 16% Demand Capacity Operations of OPEX 23% Pay Avg: 2.9 Avg: 3.8 Avg: 2.8 23% Avg: 3.4 Avg: 3.3 35% 25% 19% 16% 33% 26% 35% 5% 2% 14% 14% 14% 16% 19% 21% 16% 25% 33% 25% Increased Inventory Challenges Possible Need Loan Risk 16% Mgmt./ Attracting to Scale Down Issues 21% Management 19% Supply Chain 28% CAPEX Funding Pipeline Demand Avg: 3.1 Avg: 3.3 26% 21% Avg: 3.1 28% Avg: 3.7 Avg: 2.9 19% 23% 23% 23% 14% 35%
Individual companies’ capacity to respond to Covid-19 related impact — More than half of the 49 respondents have less than 4 months financial runway 22 WE CAN SUSTAIN THIS FOR 3-4 MONTHS BUT THEN GET INTO SERIOUS TROUBLE 15 WE WILL BE ALMOST IMMEDIATELY IN FINANCIAL TROUBLE 10 WE HAVE SOME BANDWIDTH TO ABSORB THIS BUT WILL STRUGGLE IF IT LASTS FOR MORE THAN 6 MONTHS 3 WE HAVE A HEALTHY FINANCIAL SITUATION AND CAN SUSTAIN THIS SITUATION, EVEN IF LASTING 6-9 MONTHS 0 5 10 15 20 25
What type of support are companies asking for? — The top three things respondents FUNDRAISING SUPPORT - RELIEF … requested are: BRIDGING LOANS 1. Fundraising support / relief TECHNICAL GUIDANCE funding 2. Bridge loans PEER-TO-PEER COOPERATION AND … 3. Technical guidance TARGETED ADVOCACY AND LOBBY TASK FORCE (VIRTUAL) MEETINGS NOTHING 0 10 20 30 40 50
Projects in Pipeline Additional Challenges — 100% of all respondents would be interested in building off-grid solar projects to power hospitals, clinics, and other healthcare facilities if funding was available Number of healthcare-related projects in your pipeline that could be built within the next 6 months with availability of concessional financing: AMDA Members All Participants 35 35 30 30 25 25 20 20 15 15 10 10 5 5 0 0 Hospitals Hospitals Clinics Clinics Dispensaries Dispensaries Other Other Hospitals Hospitals Clinics Clinics Dispensaries Dispensaries Other Other (Stand-alone (Community (Stand-alone (Community (Stand-alone (Community healthcare healthcare (Stand-alone (Community (Stand-alone (Community (Stand-alone (Community healthcare healthcare C&I) mini-grid) C&I) mini-grid) C&I) mini-grid) facilities facilities C&I) mini-grid) C&I) mini-grid) C&I) mini-grid) facilities facilities (Stand-alone (Community (Stand-alone (Community C&I) mini-grid) C&I) mini-grid)
Projects in Pipeline Additional Challenges — Average size of pipeline healthcare facilities that could be built within the next 6 months with availability of concessional financing: AMDA Members All Participants $506,429 – Community mini-grid pipeline CAPEX $2,148,648 – Community mini-grid pipeline CAPEX $57,000 $1,117,877 – Stand-alone project pipeline CAPEX – Stand-alone project pipeline CAPEX 12 kW 851 kW – PV Installed (Stand-alone projects) – Stand-alone pipeline PV planned
CONCLUSIONS AND RECOMMENDATIONS — Concerns over 1) Ceased Operations; 2) Challenges attracting Capex Funding, mean we must urgently ask investors to treat ongoing • due diligence on minigrids companies as a matter of urgency. There is no room for a 6 month delay in deal closing. Concerns over 1) shortage of opex; 2) decreased ability to pay; 3) possible pipeline reductions , mean we urgently ask existing minigrid • investors to consider extending additional funding and operational support to portfolio mini grid companies should need arise. Concerns over 1) shortage of opex; 2) =decreased ability to pay, mean we urgently ask interested investors without or with little • experience in the minigrid sector to consider plugging in to emergency relief funding efforts being coordinated by others. Concerns over 1) challenges attracting capex funding; 2) possible need to scale down pipeline, mean we urge a prioritisation of • deploying signed RBF commitments to enable minigrid companies achieve connection milestones as prescribed within RBF timelines Concerns over 1) inventory management/supply chain; (2) possible need to scale down pipeline mean we urge support of AMDA’s • initiative with government agencies and regulators in classifying mini grid developers and operators as essential service providers during this period of possible lockdowns, shutdowns or curfew restrictions on businesses and individuals
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