
<p>As South Africans continue to face the burden of power challenges, the adoption of solar photovoltaic (PV) solutions has reached unprecedented levels. While the PV energy solution has emerged as a robust leading technology for commerce, industry, and manufacturing, the financial burdens imposed are significant, especially for SME business owners. This has led to various innovative options emerging, promising access to clean energy.</p>



<p>Commercial and industrial businesses across the spectrum from small to medium enterprises to large corporates find it easier to justify funding these solutions, as they have become a necessity to trade, versus measures taken to contribute to climate matters or just convenience. The immediate arbitrage benefits that solar provides, battery costs dropping gradually, and its application to load shifting the overall backup solution presents greater viability. Any business can benefit from these solutions, however for businesses spending copious amounts on fuel for generators because of load shedding, the adoption of these systems is an essential consideration. These solutions aid in solving for supply interruptions while also providing partial insulation from tariff hikes.</p>



<p>One of the main incentives for business is that the payback period on capital investments has reduced steadily as energy tariffs have risen. Research shows that between 2007 and 2022, the Eskom tariff increased by 653%, effectively quadrupling the cost of power in 14 years. In April 2023, Eskom applied to NERSA for a 32% increase, indicating that this trend is not likely to change. This payback benefit has further been amplified by the recently passed amendment to the 12BA tax incentive, which allows businesses an accelerated wear and tear allowance on Solar PV investments of 125% in the first year.&nbsp;&nbsp;</p>



<p>Naturally, the need for financial solutions is a given requirement in this environment and the PV market has evolved rapidly. The current operating environment has seen financial institutions and solution providers offering various financing options. Standard Bank has been solutioning for this with cutting edge Solar PV and battery finance solutions to the market through its <a href="https://www.standardbank.co.za/southafrica/business/products-and-services/borrow-for-your-needs/vehicle-and-asset-finance">Commercial Asset Finance</a> division, for several years now. Opportunities to fund projects present themselves in numerous formats from clients who wish to own their own systems to independent power producers (IPP’s) who sell power.</p>



<p>Standard Bank has also recently provided digital platforms, <a href="https://powerpulse.standardbank.co.za/">PowerPulse</a> for commercial and industrial clients, and LookSee for residential and SME clients. &nbsp;Using these tools clients can source tailored and credible Solar PV and battery solutions. The journey entails a guided path to support clients in not falling into one of the many pitfalls that exist in the Solar PV market currently. It has proven to be a useful resource in shortening the client’s decision-making process through simplification. &nbsp;&nbsp;&nbsp;</p>



<p>Against this outlook, the options for acquiring clean energy have increased. Each has its advantages and disadvantages but allows opportunities for the most suitable to be selected. In the list below, the solutions offered by outright purchase, solar loans or solar subscriptions would be the most obvious choice. Options now open include:</p>



<p><strong>1. Outright Purchase:</strong> Purchasing a solar installation outright allows complete ownership and control over the system. The benefits are long-term energy savings and even an opportunity to sell excess electricity back to the grid in areas where this is implemented. For smaller enterprises, however, the capital outlay can be problematic and solutions for clients in this category are now available through collaboration with the government in the <a href="https://www.standardbank.co.za/southafrica/business/products-and-services/borrow-for-your-needs/business-loans/business-solar-loan">Bounce Back Energy Loan</a> programme which has been launched.&nbsp;</p>



<p><strong>2. Power Purchase Agreements (PPAs):</strong> A popular choice among South Africans, PPAs involve energy companies installing and retaining ownership of the solar system. The purchaser then buys the generated electricity at a predetermined rate, often lower than prevailing utility rates. PPAs require minimal upfront costs, making solar energy more accessible to a wider range of users. Solution providers in this environment are focussed mainly on C&amp;I clients.</p>



<p><strong>3. &nbsp;Solar Leasing:</strong> Involving an agreement with a solar company, solar leasing offers reduced electricity costs during the lease term without owning the system outright. Options for buying the solar assets at the end of the lease may be available.</p>



<p>With the ever-increasing gap between supply costs and earnings at Eskom, the need for alternative energy sources becomes even more critical. Solar installations offer a promising avenue for reducing the strain on the national utility, and widespread adoption of PV systems will play a pivotal role in driving this energy revolution.</p>



<p>As the solar industry matures, more flexible and imaginative financing options are emerging, making solar energy accessible to a broader spectrum of users. The future of renewable energy in South Africa is undoubtedly bright, and with continued innovative approaches, solar power will pave the way to a greener and more financially sustainable future for all.</p>



<p><a href="https://www.standardbank.co.za/southafrica/business/products-and-services/borrow-for-your-needs/business-loans/business-solar-loan">Click here</a> to learn more about Standard Bank’s Energy Bounce-Back Loan Scheme for businesses.</p>


GoSolar

Solar pricing alternatives for business are now adding impetus to South Africa’s energy revolution.

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<p>Last month, Kenya published a start-up bill that aims to improve the start-up ecosystem by facilitating access to capital, lowering barriers to entry into market, among others. Victor Otieno, Managing Director at Viffa Consult shares updates and further insights into how it’ll shape the SME ecosystem.</p>


How the Start-up Bill impacts Kenya’s SME ecosystem

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SMEs constitute a big portion of Kenya`s private sector but multiple taxes charged to them has been hindering their growth and ability to create jobs. An estimated 400,000 SMEs in the country shut down after only two years in business, mainly due to challenges in the regulatory environment. Richard Muteti, Chairman of Kenya National Federation of Jua Kali Associations joins CNBC Africa for more.</p>


Is the Kenyan taxation system hampering SME growth?

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<p>The United State Consul General to Nigeria, Claire Pierangelo says having identified SMEs as the growth of the Nigerian economy, the US hopes to be able to work with entrepreneurs at that level to develop their skill set and businesses. Ms Pierangelo spoke to CNBC Africa’s Christy Cole during her courtesy visit to the Nigerian Stock Exchange (NSE) here she rang the Closing gong.</p>


How U.S-Nigeria relations are set to stimulate Nigerian economy

How U.S-Nigeria relations are set to stimulate Nigerian economy, develop entrepreneurial skill set

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<p>Last week in Paris, France, a $30 million sub-participation agreement was signed between the French Development Agency (AFD) and the African Guarantee Fund (AGF). The deal seeks to improve access to financing for African Small and medium-sized enterprises (SMEs). CNBC Africa spoke to Deputy CEO of AGF, Jules Ngankam for more.</p>


African Guarantee Fund

African Guarantee Fund, French Development Agency sign $30mn deal to support SMEs

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<p>For most, an abrupt power cut is an annoyance at least and an inconvenience at most, but for many Small and medium-sized enterprises (SME&#8217;s) an unexpected loss of power could be costing them valuable time and money. This week, Schneider Electric has launched what they believe to be the solution. The company&#8217;s Head of Distribution for East Africa, Arlene Nazareth joins CNBC Africa for more.</p>


Schneider Electric Head

Schneider Electric Head, Arlene Nazareth discusses solutions for irregular power supply

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<p>Access to funding is often cited as one of the biggest challenges facing small and medium-sized enterprises (SMEs) in Africa, in a conversation on how entrepreneurs can make sure they&#8217;re putting themselves in the best position for banks and investors to give them the financing that they need, Chairman of Private Sector Federation and self-made tycoon, Robert Bapfakurera joins CNBC Africa.</p>


This is how entrepreneurs can optimize their chance of receiving

This is how entrepreneurs can optimize their chance of receiving funding

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<p>Amrei Botha, Senior SME Banking Specialist at the IFC joins CNBC Africa to unpack the Unseen Sector report which assesses the micro, small and medium enterprise landscape in South Africa.</p>


How SA can build a better ecosystem for SMEs

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<p>Nigeria’s Financial System Strategy 2020 describes the Small and Medium Scale sector as an integral part of the economy. Tochukwu Ezeuku, Investment Banker and Agriculture and SME Specialist joins CNBC Africa on the how small businesses can overcome the challenges in Nigeria.</p>


How can small businesses overcome challenges in Nigeria?

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<p>Over 20 per cent of entrepreneurs globally are now starting businesses with a community purpose, leading to three times more organizations under three years old in the social enterprise space compared to the commercial SME space.</p>


Does the future belong to the social entrepreneurs

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<p>At the SME and Banking Africa forum, Realtor, Natalie Campbell Rodriques spoke to CNBC Africa about the opportunities in the real estate space for SMEs.</p>


Challenges, opportunities in Rwanda’s real estate

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<p>At the SME and Banking Africa forum, CNBC Africa spoke to Manoj Prashar, from IFC to help us understand how IFC is tackling Africa&#8217;s access to finance woes.</p>


IFC spearheading SME funding

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<p>This could be the best time to be a start-up. As disruptors and innovators, start-ups are in a sweet spot to benefit from the fourth industrial revolution that is currently underway.</p>


Worried about being disrupted: Here’s what you can do about it

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<p>One of the most common challenges facing small-scale farmers in Kenya is access to markets and record keeping. In efforts to solve these problems, telecommunications firm Safaricom is now targeting farmers and agricultural-based SMEs.</p>


Safaricom’s ‘Connected Farmer’ app helps connects farmers, customers

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<p>Nigeria is finally out of the recession, but what opportunities or incentives can Nigeria&#8217;s small and medium enterprises take advantage of to stay ahead?</p>


Opportunities for SMEs in Nigeria

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<p>With over 270 million Twitter users and 1.2 billion Facebook users, Social media could be a powerful tool for SME&#8217;s. Susan Okoh, Strategic Planning Officer, corporate banking at Diamond Bank joins CNBC Africa for more.</p>


Impact of social media on small businesses

<p>Trevor Gosling | Lulalend</p>
<p>A common challenge for small business owners is ensuring adequate cash flow. Increasing costs of supplies, inventory or business operations can often outpace the money coming into the business. Without smart cash flow management, business owners can quickly land in hot water. But, says Trevor Gosling, CEO of online small business lender Lulalend, there are some key principles that business owners can follow to ensure the lifeblood of their business – cash flow – is not placed in undue peril. “Business owners need to keep an eye trained on budgets, overheads, suppliers and day-to-day expenses. Luckily, there are some tried and tested cash flow management tips to ensure there’s not too much month for your money.”</p>
<p>Gosling recommends that business owners consider the following:</p>
<p><strong>#1 &#8211; Find ways of bringing in new business and retain existing customers</strong></p>
<p>The first step is to make sure you’re marketing your business to the right people in the right way. You might need to rethink your marketing plan or start marketing if that hasn’t been on your agenda. Maybe it’s worthwhile to run some specials or promotions to draw in more customers.</p>
<p>Secondly, don’t forget about existing customers. Take advantage of your well-earned relationships, and turn them into brand advocates who keep coming back. Their experience at every touch point will influence whether they turn into repeat customers.</p>
<p><strong>#2 &#8211; Build strong relationships with trustworthy suppliers</strong></p>
<p>Building a solid relationship with suppliers will put you in a better position to negotiate with them – this means they are more likely to offer you discounts and special deals. For example, because you’ve built a good relationship and the supplier knows you are a trustworthy client there may be opportunities for more flexibility in extending your credit. Instead of having just two weeks to pay a supplier you could push for four weeks. And because the supplier knows you’re good for it, they might be willing to accommodate.</p>
<p><strong>#3 &#8211; Assess where you can save in the day-to-day running of the business</strong></p>
<p>We spend a big chunk of our lives at the office, so it’s understandable that we want to make it a comfortable environment for ourselves and our employees. But are you spending more on luxuries then you need to? Do you really need that fancy espresso machine or trendy office furniture? Consider what are needs and what are wants.</p>
<p>This can even apply to the software that you need for business operations. Determine whether a subscription-based offering is reasonable and includes the features you need. For example, Xero offers its online accounting software for as little as R140 per month which integrates with your bank, enables you to send invoices, and lets you reconcile bank statements easily.</p>
<p><strong>#4 &#8211; Go green</strong></p>
<p>There are a couple of ways you can save money by being an environmentally conscious business. Why not go paperless, whether this is for emails, invoices, or bookkeeping? With the current water shortage in South Africa, encourage your employees to use water conservatively and fix any leaking taps as soon as you become aware of them. You may think these small changes do not make a big difference in your bottom line, but consider this: Brian Wilkinson, CEO of Green Building Council of South Africa (GBCSA), says a green building on average saves 25% in electricity. These energy efficient solutions may also help you qualify for tax incentives, which work on the basis of quantifiable energy that you save expressed as kilowatt-hours (kWh). For each kWh that you save, you could get up to R0.45 tax relief.</p>
<p><strong>#5 &#8211; Use your office space wisely</strong></p>
<p>Office space can be very pricey – especially if you want a prime spot that’s accessible to a large customer base. Make sure that the space you rent is suitable for a small business and that subleasing doesn’t go against your own lease agreement. A shared workspace will also save you a substantial amount on utilities. For example, The Bureaux Flexible Work Habitats offer a desk space for R1,850 per month and it includes necessities like electricity, water, and Wi-Fi connection.</p>
<p><strong>#6 &#8211; Invoice customers as quickly as possible</strong></p>
<p>As a business, you want your clients to pay you as soon as possible. To get paid quickly, be sure to invoice them immediately after the service/product has been provided. For services such as those offered by electricians, plumbers and other similar trades, you could consider offering discounts as an incentive for paying early. While giving a discount may tighten margins slightly, it will also manage to free up cash flow in your business.</p>
<p><strong>#7 &#8211; Be proactive</strong></p>
<p>Don’t wait until your business is experiencing a cash flow slump. Make sure that you have documented a plan and a cost-reduction strategy in place so that you’re prepared when the leaner months arrive. Every business is bound to experience a bump in the road, but the true mark of a successful business is having a strategy in place to manage cash flow.</p>
<p>Short term business funding is also a viable option to help your business if you are experiencing a dip in cash flow. Access to funding can help you purchase more stock or inventory to increase sales and bring in more business, and could ensure that you are paying the loan off quickly and not getting yourself into a debt cycle. At Lulalend we help SMEs get quick, easy access to business funding so that they can see success and not digress. With business funding of up to R500 000 and flexible repayment plans, you can turn things around for your business and remain in the cash flow positive.</p>


SME

Solar pricing alternatives for business are now adding impetus to South Africa’s energy revolution.

How the Start-up Bill impacts Kenya’s SME ecosystem

Is the Kenyan taxation system hampering SME growth?

How U.S-Nigeria relations are set to stimulate Nigerian economy, develop entrepreneurial skill set

African Guarantee Fund, French Development Agency sign $30mn deal to support SMEs

Schneider Electric Head, Arlene Nazareth discusses solutions for irregular power supply

This is how entrepreneurs can optimize their chance of receiving funding

How SA can build a better ecosystem for SMEs

How can small businesses overcome challenges in Nigeria?

Does the future belong to the social entrepreneurs

Challenges, opportunities in Rwanda’s real estate

IFC spearheading SME funding

Worried about being disrupted: Here’s what you can do about it

Safaricom’s ‘Connected Farmer’ app helps connects farmers, customers

Opportunities for SMEs in Nigeria

Impact of social media on small businesses

How to keep your SME cash-flow positive

News Tips

Advertise With Us

SME

Solar pricing alternatives for business are now adding impetus to South Africa’s energy revolution.

How the Start-up Bill impacts Kenya’s SME ecosystem

Is the Kenyan taxation system hampering SME growth?

How U.S-Nigeria relations are set to stimulate Nigerian economy, develop entrepreneurial skill set

African Guarantee Fund, French Development Agency sign $30mn deal to support SMEs

Schneider Electric Head, Arlene Nazareth discusses solutions for irregular power supply

This is how entrepreneurs can optimize their chance of receiving funding

How SA can build a better ecosystem for SMEs

How can small businesses overcome challenges in Nigeria?

Does the future belong to the social entrepreneurs

Challenges, opportunities in Rwanda’s real estate

IFC spearheading SME funding

Worried about being disrupted: Here’s what you can do about it

Safaricom’s ‘Connected Farmer’ app helps connects farmers, customers

Opportunities for SMEs in Nigeria

Impact of social media on small businesses

How to keep your SME cash-flow positive

News Tips

Advertise With Us

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