"For African countries, the biggest obstacle to building out the solar industry is that the financing tricks used in China, Europe, and the U.S. to clear the way for widespread solar adoption — government subsidies and utility payments to solar-equipped customers — can’t work in places where states, utilities, and households are all chronically strapped for cash. At the same time, supply chain problems and the widespread perception by financial institutions that investments in Africa are high-risk mean that the cost of solar is far higher than in other places — the same solar system costs twice as much in Ghana as in the U.S. Bringing down the cost of capital requires a stronger track record of profitable investments than what the industry has been able to show so far. That means new business models are needed to make solar affordable for a broader base of customers."
