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OMDF will provide subsidies to distributors of qualified products. Participating companies receive a subsidy for each qualified solar product distributed in Madagascar (“results-based financing”, RBF). The subsidy is disbursed after the reporting and verification of sales.
Companies that:
Can apply for and receive subsidies.
Any product that:
4 types of subsidies are offered:
QS, PAYGO and F4S subsidies are paid after being reported by the company and verified by an independent verification agent.
The QS Component pays companies for each product sold (certified by Lighting Global) with an adequate after-sales service.
Base Subsidy The base subsidy is based on the products lumens-hours, as shown on the product specification on the VeraSol website and the number of light points (“lm-h subsidy”) as well as the connected appliances (“appliance subsidy”).
The lm-h subsidy has a maximum value cap.
Number of light points | Base subsidy | Cap |
1 light point | 0,01 USD par lm-h | 10,00 USD |
More than 1 light point | 0,02 USD par lm-h | 35,00 USD |
The appliance subsidy depends on the connected appliances:
radio: 5 USD
fan: 15 USD
TV: 50 USD
computer: 100 USD
Geographic bonus OMDF will provide an additional geographic bonus (“geo bonus”) for sales made in regions that are more difficult to access and / or less interesting to serve in order to offset the additional costs associated with the sale. The following regions are eligible for the geographic bonus: ·
The geographic bonus represents 20% of the base subsidy.
All product sales made with consumer financing benefit from the PAYGO component. “Financing” refers to different consumer financing solutions (microcredits and pay-as-you-go) with a minimum term of six months and an amount of at least 70% of the final price. The PAYGO Component is an additional subsidy to the QS Component. The PAYGO Component represents 50% of the base subsidy. The PAYGO subsidy is paid six months after the sale provided that the product is still actively used by the end customer and that usage is verified by an independent verification agent.
The Fee-For Service subsidy is available to distributors offering rental of charged and certified lamps or batteries or battery charging for a fee.
Base subsidy
The F4S base is calculated from the lumen-hours (lm-h) as indicated in the specifications of VeraSol and the number of light points. The subsidy is capped.
Number of light points | Base subsidy | Cap |
1 light point | 0,015 USD par lm-h | 7,50 USD |
More than 1 light points | 0,03 USD par lm-h | 15,00 USD |
Geographic bonus OMDF will pay an additional geographic bonus for distributions made in regions with a poverty ratio greater than or equal to 80%, in particular:
The geographic bonus is 20% of the capped F4S base.
The Start-up Component is a partial prepayment of the QS, PAYGO and F4S component to finance activities that will accelerate the development of the distribution of certified solar products. Since traditional RBF mechanisms only make payments once sales have been confirmed, the Start-Up Component will provide financial support in the form of prepayment to meet the initial needs. Being a partial prepayment of the QS, PAYGO and F4S component, the start-Up subsidy received will be, gradually and partially, compensated by each disbursement request of the QS and / or PAYGO and / or F4S component submitted by the company. Example The Start-Up component can be used to finance marketing campaigns and the training of sales agents.
To ensure that the market will develop in a sustainable way, the subsidy will be gradually reduced before the end of the RBF subsidy program on June 30, 2024. The subsidy levels described above will be guaranteed for sales made until 30 June 2023.
If you are interested in the different types of funding offered, please contact us.