Transcript 

In Kenya alone, two out of every five houses still lack access to a reliable electric grid. On a global scale, approximately 200 million households are still without reliable electricity. It's an enormous challenge, but remarkable companies, like Sun King, are tirelessly working towards solutions. To bridge this energy gap and make solar power accessible to all, a substantial amount of financing is required. Assuming an average cost of $100 per system, this would amount to around $20 billion of financing needed to provide power to every off-grid home worldwide.
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While the scale of the energy gap is significant, there are remarkable companies working tirelessly to provide solutions. In this episode, we shine a light on Sun King, an extraordinary company that is transforming the lives of millions of people through its solar home systems. Anish Thakkar, episode guest and co-founder of Sun King, shares the remarkable story of how he and his partner met and started their mission to provide affordable and reliable solar power to off-grid homes in Asia and Africa.
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Eugene Amusin, head of strategy and client solutions for Citi Social Finance, also joins the episode to share how Citi is supporting Sun King's efforts to bring sustainable energy access to millions of homes in sub-Saharan Africa. Citi Social Finance recognizes the importance of delivering basic services to low-income communities in emerging markets, including energy access, education, healthcare, and housing. They focus on finding companies like Sun King that are innovating in these areas and help them scale their operations. This partnership represents a crucial step in empowering these communities with reliable and sustainable electricity,
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This conversation highlights the innovative business model of Sun King and the collaboration between Sun King and Citi to drive social impact and expand access to essential services. Listen in to learn about the transformative power of renewable energy and the efforts being made to create a more sustainable and inclusive future.
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LEGAL:&nbsp;
Citibank N.A. (&ldquo;Citi&rdquo;), and Sun King. are not affiliated and are independent companies, though Sun King has a relationship with Citi through Citi&rsquo;s Institutional Clients Group. &nbsp;The speakers&rsquo; views are their own and may not necessarily reflect the views of Citi or any of its affiliates.
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All opinions are subject to change&nbsp;without notice. Neither the information&nbsp;provided,&nbsp;nor any opinion expressed constitutes&nbsp;a solicitation for the purchase or sale of any security. The expressions of opinion&nbsp;are not&nbsp;intended to be a forecast of future events or a guarantee of future results.

Anish Thakkar is a Co-Founder of Sun King (formerly named Greenlight Planet) , an off-grid solar company. Prior to Greenlight Planet, Anish worked with ZS Associates, the world&rsquo;s largest sales and marketing consultancy. Anish is a graduate of the University of Illinois at Urbana-Champaign.&nbsp;

Anish Thakkar, Co Founder , Sun King

Eugene Amusin is Head of Strategy and Client Solutions, Director for Social Finance at Citi.
Eugene is responsible for designing strategy and delivering client solutions with social impact in emerging markets. He provides industry specialist support globally across sector working with growth companies, financial institutions and corporates. 
Eugene leads social impact risk-sharing collaborations with development finance institutions, multilateral agencies and foundations. He has led a number of innovative transactions including the first microfinance carbon offset financing, and mobile collections solution for smallholder farmers, first microfinance IPO on the London Stock Exchange and milestone off-grid solar financings.
Eugene has 20 years of structuring, product management, technology and customer relationship experience with Citi. Having started his career as software engineer, his product background extends from cash management and securities to foreign exchange and capital markets.
Eugene is a proud dad of two kids and based in London.

Eugene Amusin, Head of Strategy and Client Solutions, Social Finance, Citi

Season 3

Transforming lives with affordable solar power Bringing sustainable electricity to off-grid communities.

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Good Things Happen E4: Bringing Solar Power to African Communities

The Road to COP28

Jason Channell joins Julie Monaco and Liz Curmi following their attendance of the Africa Climate week Summit and discusses the outcomes and the impacts it will have on COP28.

Transition Talks: E1: The Africa Climate Summit, Paving the Way

Download Report

Although, broadly speaking, Africa rode out the pandemic-related economic crisis relatively well, with growth slowing much less than most economists forecast, the crisis has brought to a head many issues that were already emerging. Notably, following COVID-19, and then the rise in international interest rates, the widening fiscal deficits have proved hard to fund and led to defaults in Zambia and Ghana. But COVID-19 also highlighted the ongoing resilience of the growth story in Africa, which seems to have firmly put a floor on growth in many countries. The pandemic also underscored the importance of the informal sector as a safety net for many individuals and households across the continent. Not only has growth held up remarkably well, but there has been no wider spreading of defaults either. Yet the challenge facing the continent’s policymakers in the short term is clear: the need to narrow fiscal deficits. At present, this is set to be achieved under a new wave of International Monetary Fund (IMF) programs, which we have broadly dubbed the “New Age of Fiscal Austerity.” Unlike in the late 1980s and early 1990s, the new wave of IMF programs is not based on cutting spending; in fact, spending on health and education will be preserved. Instead, fiscal consolidation is largely driven by raising revenue. A key element of this will be taxing the informal sector. Coupled with this is the challenge to formulate new exchange rate policies in an era of higher global interest rates. It is also worth highlighting that after the last wave of defaults across Africa in the mid-1990s, better fiscal discipline and more flexible exchange rate regimes ushered in a strong pickup in growth, eventually encapsulated in the “Africa Rising” story. We think that at the time the hype around this story was overplayed, but that does not mean that there were not many real elements to it that still have important implications about how Africa will grow and develop going forward, or which we think will be the key elements of a “New Growth Model” for Africa. For a “New Growth Model” to emerge, however, African governments, and the private sector are going to have to work together to take advantage of the continent’s favorable demographics, technological developments, and a changing world economy. At the same time, it is critical to avoid getting caught up in a new hype and forgetting the importance of developing foundational infrastructure. There is an argument that politics could yet undermine such a “New Growth Model” playing out. While we accept that politics can be a constraint on development, we suspect that if the story is to play out as we hope, more African governments will simply have to get serious about economic growth and development as their central political and policy concerns. Finally, it is important to bear in mind that development does require clear politics and policy, but also has an element of luck. Moreover, it is perhaps a much more gradual process than is often popularly perceived. Africa has changed vastly in the last 50 years and will continue to change. The challenge for policymakers, facing young and demanding populations, is to try and speed up the process.

Although, broadly speaking, Africa rode out the pandemic-related economic crisis relatively well, with growth slowing much less than most economists forecast, the crisis has brought to a head many issues that were already emerging. Notably, following COVID-19, and then the rise in international interest rates, the widening fiscal deficits have proved hard to fund and led to defaults in Zambia and Ghana.
But COVID-19 also highlighted the ongoing resilience of the growth story in Africa, which seems to have firmly put a floor on growth in many countries. The pandemic also underscored the importance of the informal sector as a safety net for many individuals and households across the continent. Not only has growth held up remarkably well, but there has been no wider spreading of defaults either. Yet the challenge facing the continent&rsquo;s policymakers in the short term is clear: the need to narrow fiscal deficits. At present, this is set to be achieved under a new wave of International Monetary Fund (IMF) programs, which we have broadly dubbed the &ldquo;New Age of Fiscal Austerity.&rdquo;
Unlike in the late 1980s and early 1990s, the new wave of IMF programs is not based on cutting spending; in fact, spending on health and education will be preserved. Instead, fiscal consolidation is largely driven by raising revenue. A key element of this will be taxing the informal sector. Coupled with this is the challenge to formulate new exchange rate policies in an era of higher global interest rates.
It is also worth highlighting that after the last wave of defaults across Africa in the mid-1990s, better fiscal discipline and more flexible exchange rate regimes ushered in a strong pickup in growth, eventually encapsulated in the &ldquo;Africa Rising&rdquo; story. We think that at the time the hype around this story was overplayed, but that does not mean that there were not many real elements to it that still have important implications about how Africa will grow and develop going forward, or which we think will be the key elements of a &ldquo;New Growth Model&rdquo; for Africa.
For a &ldquo;New Growth Model&rdquo; to emerge, however, African governments, and the private sector are going to have to work together to take advantage of the continent&rsquo;s favorable demographics, technological developments, and a changing world economy. At the same time, it is critical to avoid getting caught up in a new hype and forgetting the importance of developing foundational infrastructure.
There is an argument that politics could yet undermine such a &ldquo;New Growth Model&rdquo; playing out. While we accept that politics can be a constraint on development, we suspect that if the story is to play out as we hope, more African governments will simply have to get serious about economic growth and development as their central political and policy concerns.
Finally, it is important to bear in mind that development does require clear politics and policy, but also has an element of luck. Moreover, it is perhaps a much more gradual process than is often popularly perceived. Africa has changed vastly in the last 50 years and will continue to change. The challenge for policymakers, facing young and demanding populations, is to try and speed up the process.

African Economies Have Unique Strengths… African economies have shown comparative resilience in the face of shocks such as the Global Financial Crisis and COVID-19 pandemic. This suggests their dependence on the informal and agricultural sectors is not always a negative. In our view, it implies a clear growth floor for most of the continent.

African economies have shown comparative resilience in the face of shocks such as the Global Financial Crisis and COVID-19 pandemic. This suggests their dependence on the informal and agricultural sectors is not always a negative. In our view, it implies a clear growth floor for most of the continent.

African Economies Have Unique Strengths…

…and Vulnerabilities The fiscal positions of many African countries were deteriorating before 2020, but low interest rates incentivized further excessive borrowing. Africa&rsquo;s key policy battles in the coming years look set to center on improving fiscal discipline while also making exchange rate policy more flexible.

The fiscal positions of many African countries were deteriorating before 2020, but low interest rates incentivized further excessive borrowing. Africa&rsquo;s key policy battles in the coming years look set to center on improving fiscal discipline while also making exchange rate policy more flexible.

…and Vulnerabilities

Can Growth by Trumped by Demographic Challenges? It is uncertain whether Africa will be able to create the jobs necessary to absorb the inevitable rise in its labor force due to its rapidly growing population. On the other hand, aging populations elsewhere may create an historically unprecedented opportunity for the continent to become a global supplier of labor.

It is uncertain whether Africa will be able to create the jobs necessary to absorb the inevitable rise in its labor force due to its rapidly growing population. On the other hand, aging populations elsewhere may create an historically unprecedented opportunity for the continent to become a global supplier of labor.

Can Growth by Trumped by Demographic Challenges?

A New Growth Model We identify the following strategies &mdash; all, of course, easier said than done &mdash;for African economies to maintain stable growth and improve their fiscal positioning:

We identify the following strategies &mdash; all, of course, easier said than done &mdash;for African economies to maintain stable growth and improve their fiscal positioning:

A New Growth Model

Although, broadly speaking, Africa rode out the pandemic-related economic crisis relatively well, with growth slowing much less than most economists forecast, the crisis has brought to a head many issues that were already emerging. Notably, following COVID-19, and then the rise in international interest rates, the widening fiscal deficits have proved hard to fund and led to defaults in Zambia and Ghana. But COVID-19 also highlighted the ongoing resilience of the growth story in Africa, which seems to have firmly put a floor on growth in many countries. The pandemic also underscored the importance of the informal sector as a safety net for many individuals and households across the continent. Not only has growth held up remarkably well, but there has been no wider spreading of defaults either. Yet the challenge facing the continent’s policymakers in the short term is clear: the need to narrow fiscal deficits. At present, this is set to be achieved under a new wave of International Monetary Fund (IMF) programs, which we have broadly dubbed the “New Age of Fiscal Austerity.” Unlike in the late 1980s and early 1990s, the new wave of IMF programs is not based on cutting spending; in fact, spending on health and education will be preserved. Instead, fiscal consolidation is largely driven by raising revenue. A key element of this will be taxing the informal sector. Coupled with this is the challenge to formulate new exchange rate policies in an era of higher global interest rates. It is also worth highlighting that after the last wave of defaults across Africa in the mid-1990s, better fiscal discipline and more flexible exchange rate regimes ushered in a strong pickup in growth, eventually encapsulated in the “Africa Rising” story. We think that at the time the hype around this story was overplayed, but that does not mean that there were not many real elements to it that still have important implications about how Africa will grow and develop going forward, or which we think will be the key elements of a “New Growth Model” for Africa. For a “New Growth Model” to emerge, however, African governments, and the private sector are going to have to work together to take advantage of the continent’s favorable demographics, technological developments, and a changing world economy. At the same time, it is critical to avoid getting caught up in a new hype and forgetting the importance of developing foundational infrastructure. There is an argument that politics could yet undermine such a “New Growth Model” playing out. While we accept that politics can be a constraint on development, we suspect that if the story is to play out as we hope, more African governments will simply have to get serious about economic growth and development as their central political and policy concerns. Finally, it is important to bear in mind that development does require clear politics and policy, but also has an element of luck. Moreover, it is perhaps a much more gradual process than is often popularly perceived. Africa has changed vastly in the last 50 years and will continue to change. The challenge for policymakers, facing young and demanding populations, is to try and speed up the process. African Economies Have Unique Strengths… African economies have shown comparative resilience in the face of shocks such as the Global Financial Crisis and COVID-19 pandemic. This suggests their dependence on the informal and agricultural sectors is not always a negative. In our view, it implies a clear growth floor for most of the continent. …and Vulnerabilities The fiscal positions of many African countries were deteriorating before 2020, but low interest rates incentivized further excessive borrowing. Africa&rsquo;s key policy battles in the coming years look set to center on improving fiscal discipline while also making exchange rate policy more flexible. Can Growth by Trumped by Demographic Challenges? It is uncertain whether Africa will be able to create the jobs necessary to absorb the inevitable rise in its labor force due to its rapidly growing population. On the other hand, aging populations elsewhere may create an historically unprecedented opportunity for the continent to become a global supplier of labor. A New Growth Model We identify the following strategies &mdash; all, of course, easier said than done &mdash;for African economies to maintain stable growth and improve their fiscal positioning:

When we wrote about Africa in 2015, the story was "Africa Rising." But with a sharp pull back in commodity prices since then and rising fiscal deficits, then COVID-19, the trajectory of growth and debt deteriorated. What is the new growth model for Africa? We look at the medium and longer-term growth prospects for Africa, including its population conundrum and whether agriculture and services can drive a new African growth model as well as the infrastructure and power challenge as well as the developments in financing.

Africa

The transition away from “Africa Rising” story in search of transformative growth and change. How African governments and the private sector need to work together for a “New Growth Mode”’ to emerge. The role of infrastructure and commodities in the changing growth story across the continent. Africa’s unique demographics and the challenges they pose to policy makers in framing development agendas. The importance of improving fiscal discipline and exchange rate flexibility for growth to pick up and to increase resilience against future economic shocks.

<ul type="disc">
<li>The transition away from &ldquo;Africa Rising&rdquo; story in search of transformative growth and change.</li>
<li>How African governments and the private sector need to work together for a &ldquo;New Growth Mode&rdquo;&rsquo; to emerge.</li>
<li>The role of infrastructure and commodities in the changing growth story across the continent.</li>
<li>Africa&rsquo;s unique demographics and the challenges they pose to policy makers in framing development agendas.</li>
<li>The importance of improving fiscal discipline and exchange rate flexibility for growth to pick up and to increase resilience against future economic shocks.</li>
</ul>

David Cowan, Emerging Markets Economist, Citi Research discusses  the ongoing resilience in the Africa growth story based on the continent’s favourable demographics, technological developments and a changing world economy.