AMDA Members: Ability to respond to COVID--19 All participants: - - PowerPoint PPT Presentation

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Ability to respond to COVID-19

34% 33% 33%

AMDA Members: Ability to respond to COVID--19

We can sustain this for 3-4 months but then get into serious trouble We have a healthy financial situation and can sustain this situation, even if lasting 6-9 months We have some bandwidth to absorb this but will struggle if it lasts for more than 6 months We will be almost immediately in financial trouble 46% 7% 21% 26%

All participants: Ability to respond to COVID--19

We can sustain this for 3-4 months but then get into serious trouble We have a healthy financial situation and can sustain this situation, even if lasting 6-9 months We have some bandwidth to absorb this but will struggle if it lasts for more than 6 months We will be almost immediately in 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

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AMDA MEMBERS

Concern Areas

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HR Capacity Inventory Mgmt./ Supply Chain Ceased Operations Decreased Demand Decreased Ability to Pay Shortage of OPEX Challenges Attracting CAPEX Funding Loan Issues Increased Risk Management Demand Possible Need to Scale Down Pipeline

AMDA Members: Percentage of Ratings per Concern Area

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AMDA MEMBERS

Concern Areas

11% 11% 22% 45% 11%

HR Capacity

0% 11% 22% 45% 22%

Inventory Mgmt./ Supply Chain

0% 0% 11% 67% 22%

Ceased Operations

22% 22% 34% 22% 0%

Decrease in Demand

0% 11% 11% 56% 22%

Decreased Ability to Pay

0% 0% 33% 56% 11%

Shortage

• f OPEX

0% 11% 22% 34% 33%

Challenges Attracting CAPEX Funding

0% 45% 11% 33% 11%

Loan Issues

11% 11% 56% 11% 11%

Increased Risk Management Demand

0% 11% 33% 56% 0%

Possible Need to Scale Down Pipeline Avg: 3.3 Avg: 3.8 Avg: 4.1 Avg: 3.9 Avg: 3.9 Avg: 3.8 Avg: 3.1 Avg: 3.4 Avg: 2.6 Avg: 3.0

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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.

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0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HR Capacity Inventory Mgmt./ Supply Chain Ceased Operations Decreased Demand Decreased Ability to Pay Shortage of OPEX Challenges Attracting CAPEX Funding Loan Issues Increased Risk Management Demand Possible Need to Scale Down Pipeline

All Registrations

Concern Areas All Registrations: Percentage of Ratings per Concern Area

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All Registrations

Concern Areas

16% 23% 26% 21% 14%

HR Capacity

5% 25% 23% 28% 19%

Inventory Mgmt./ Supply Chain

9% 7% 12% 35% 37%

Ceased Operations

17% 35% 16% 16% 16%

Decrease in Demand

7% 23% 19% 25% 26%

Decreased Ability to Pay

9% 16% 33% 23% 19%

Shortage

• f OPEX

2% 16% 26% 23% 33%

Challenges Attracting CAPEX Funding

14% 28% 14% 19% 25%

Avg: 3.1 Loan Issues

16% 19% 35% 16% 14%

Increased Risk Management Demand

14% 21% 23% 21% 21%

Possible Need to Scale Down Pipeline Avg: 2.9 Avg: 3.3 Avg: 3.8 Avg: 2.8 Avg: 3.4 Avg: 3.3 Avg: 3.7 Avg: 2.9 Avg: 3.1

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Individual companies’ capacity to respond to Covid-19 related impact

3 10 15 22 5 10 15 20 25 WE HAVE A HEALTHY FINANCIAL SITUATION AND CAN SUSTAIN THIS SITUATION, EVEN IF LASTING 6-9 MONTHS WE HAVE SOME BANDWIDTH TO ABSORB THIS BUT WILL STRUGGLE IF IT LASTS FOR MORE THAN 6 MONTHS WE WILL BE ALMOST IMMEDIATELY IN FINANCIAL TROUBLE WE CAN SUSTAIN THIS FOR 3-4 MONTHS BUT THEN GET INTO SERIOUS TROUBLE

More than half of the 49 respondents have less than 4 months financial runway

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10 20 30 40 50 NOTHING TASK FORCE (VIRTUAL) MEETINGS TARGETED ADVOCACY AND LOBBY PEER-TO-PEER COOPERATION AND … TECHNICAL GUIDANCE BRIDGING LOANS FUNDRAISING SUPPORT - RELIEF …

What type of support are companies asking for?

The top three things respondents requested are:

• 1. Fundraising support / relief

funding

• 2. Bridge loans
• 3. Technical guidance

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Projects in Pipeline Additional Challenges 100%

• f all respondents would be interested in building off-grid solar projects to power hospitals,

clinics, and other healthcare facilities if funding was available

5 10 15 20 25 30 35 Hospitals (Stand-alone C&I) Hospitals (Community mini-grid) Clinics (Stand-alone C&I) Clinics (Community mini-grid) Dispensaries (Stand-alone C&I) Dispensaries (Community mini-grid) Other healthcare facilities (Stand-alone C&I) Other healthcare facilities (Community mini-grid) 5 10 15 20 25 30 35 Hospitals (Stand-alone C&I) Hospitals (Community mini-grid) Clinics (Stand-alone C&I) Clinics (Community mini-grid) Dispensaries (Stand-alone C&I) Dispensaries (Community mini-grid) Other healthcare facilities (Stand-alone C&I) Other healthcare facilities (Community mini-grid)

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

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Projects in Pipeline Additional Challenges

AMDA Members

$506,429 – Community mini-grid pipeline CAPEX $57,000

– Stand-alone project pipeline CAPEX

12 kW

– PV Installed (Stand-alone projects) All Participants

$2,148,648 – Community mini-grid pipeline CAPEX $1,117,877

– Stand-alone project pipeline CAPEX

851 kW

– Stand-alone pipeline PV planned

Average size of pipeline healthcare facilities that could be built within the next 6 months with availability of concessional financing:

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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