OMDF provides two types of financing: grants for each solar product distributed (“results-based financing”) with a pre-payment option for eligible distributors of certified solar products and loans for eligible companies and organisations involved in the distribution of solar products.
Yes, a company can benefit from both loans and grants, as long as the company meets the criteria.
OMDF will be active in the off-grid market of solar products in Madagascar until June 2024.
OMDF will cover all of Madagascar. However, products distributed in regions with a poverty ratio greater than or equal to 80% will benefit from a bonus as part of the grant.
OMDF is part of the LEAD (Least-Cost Electricity Access Development) project, which has several public and private partners. The project is initiated by the Malagasy government, led by the Ministry of Energy and Hydrocarbons (MEH), financed by the World Bank (WB) and managed by Bamboo Capital Partners (BCP) in partnership with Banque Société Générale Madagasikara as financial partner.
OMDFwill only support good quality solar products from solar lamps to entry-level solar home systems (SHS). Hence OMDF will only finance Lighting Global/VeraSol certified products.
In order to be make loans in Madagascar, OMDF has chosen Société Générale Madagasikara as its financial partner. Thus, Société Générale Madagasikara will bring its expertise in loan distribution and will be the channel for OMDF. Companies working with OMDF must meet SG’s compliance regulations.
The three types of loan offered by OMDF have a minimum amount of USD 50,000 and a maximum of USD 4,000,000 in local currency or USD. Exceptionally loans below USD 50,000 may be available.
Mezzanine debt is mainly offered to small companies that need additional financing, but have difficulty in obtaining traditional financing.
It is unsecured debt which can only be offered in combination with senior debt and will be at a higher interest rate.
OMDF offers “secured” loans (with a guarantee based on inventory and/or receivables) for inventory financing and for refinancing PAYG loans. Unsecured loans are not guaranteed against any assets. This is mezzanine debt for companies that need more capital to grow.
Yes, a company can benefit from both types of loan. However, “unsecured” loans cannot be obtained without also having a “secured” loan.
Yes. OMDF gives grants for products which are sold or distributed via alternative models such as rental, etc. In the case of products sold, the beneficiary receives a “QS” grant which can be combined with an additional “PAYG” grant, for products sold with consumer finance. Products that are not sold but distributed via alternative models such as rental receive a “F4S” grant. Those products are not eligible for the “PAYG” grant. The start-up component is a pre-payment of the other grants.
No. Grants are do not have to be paid back unless there has been fraud.
Only products certified by Lighting Global/VeraSol are eligible.
The start-up grant is paid quarterly based on the financing needs of the company over the next three months.
Eligibility criteria for the grants including the geographic grant may change according to the market situation and the economic development of the country.
No fees will be charged when applying for a loan or a grant.
Application forms must be sent by e-mail.
The list of documents needed for a loan or a grant application as well as the corresponding application forms are available for download.
Yes. In order to deal with applications quickly, a complete set of documents is necessary.