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 selected regions 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.
OMDF will only support good quality solar products from solar lamps to entry-level solar home systems (SHS). Hence OMDF will only finance VeraSol or IEC TS 62257-9-8 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.
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 do not have to be paid back unless there has been fraud. However, the start-up component will be compensated with future QS, PAYGO and F4S disbursements.
The disbursement of the start-up component depends on milestones fixed in the grant contract and is limited to the financial needs for the next three months per payment.
Eligibility criteria for the grants including the geographic grant may change according to the market situation and the economic development of the country.
Refurbished products are eligible for the F4S grant if original spare parts are used and if the refurbished product didn’t benefit from a F4S grant before in order to avoid double financing. Refurbished products are not eligible for a QS or PAYGO grant.
In this case, the product is potentially eligible for a PAYGO grant.
The distributor has a minimum of 6 months (and a maximum of 12 months) between the date the product was delivered to the customer (initial payment) and the date of the disbursement request. All information in the disbursement request must be updated at the end of each quarter relating to the request.
Yes. All Malagasy companies or Malagasy subsidiaries of a company distributing solar products are eligible to apply for a FBR grant, including start-ups able to justify their ability to finance their activities, including the acquisition of products to be distributed.
No. However, the start-up grant is intended to accompany the launch of the distribution of solar products and OMDF recommends that the start-up grant be used within 12 months contract signature.
OMDF reserves the right to demand repayment of the start-up grant already disbursed, but not yet compensated.
The FBR grant will be disbursed at the MGA equivalent of the grant amount in USD. Any exchange fees and commissions associated with the conversion will be borne by the beneficiary.
No fees will be charged when applying for a loan or a grant. However, a fee will be charged for the signature of a loan agreement.
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.