PAYGo PERFORM: Industry Trends

This Slide Deck is a supplement to the official CGAP Blog "What Have We Learned from Recent PAYGo Off-Grid Solar Analysis?" (Nov 2023).

This report contains the results of a detailed analysis of data on the PAYGo solar industry that followed the groundbreaking work on accounting standardization for the industry that was undertaken by experts from GOGLA, IFC, CGAP and MFR. The report was commissioned by CGAP and produced by MFR, and it provides the first ever publicly available analysis of the overall financial health of the PAYGo sector using the indicators developed through the PAYGo PERFORM Initiative i.e. Company and Operational data, Portfolio Quality measures, and Financial Performance. Whilst it clearly demonstrates the very wide range of situations in the industry at present, the report does confirm that routes to profitability do exist, and it underlines the key role that good credit risk management plays in firms achieving profitability. This report and future iterations are intended to build further momentum for greater transparency in the sector, using the PAYGo PERFORM Indicators, which will ultimately lead to better capital allocation and a healthier PAYGo sector overall.

Disclaimer

This work was commissioned by CGAP and funded in whole or in part by CGAP as part of its Financial Innovations for Development (FI4D) project. Unlike CGAP’s official publications, the viewpoints and conclusions expressed are those of the authors and they may or may not reflect the views of CGAP staff.