Unlocking Local Private Capital to Finance the Productive Use of Renewable Energy (PURE) Sector – a Look at East African Local Financial Institutions (LFIs)

The document examines the role of local financial institutions (LFIs) in East Africa in financing the productive use of renewable energy (PURE), particularly for SMEs and the agricultural sector. While there is strong interest in expanding PURE lending, LFIs face constraints such as limited staff capacity, credit risks, and insufficient funding. The paper suggests that 17 surveyed LFIs require $174 million to expand their lending and recommends a shift toward more direct lending from balance sheets, the use of green bonds, and collaboration with development partners for de-risking instruments.

• Local financial institutions (LFIs) in East Africa show strong interest in expanding lending for the productive use of renewable energy (PURE), with a specific focus on the agricultural sector, but they are hindered by credit risks, limited staff capacity, and insufficient funding sources.
• A survey of 17 LFIs identified a collective funding requirement of $174 million to increase PURE lending activities.
• To scale PURE financing, LFIs should move beyond reliance on indirect lending from government or development finance institution (DFI) programs and increase direct lending using their own balance sheets.
• LFIs can access additional capital by pursuing accreditation for climate fund credit lines and issuing green bonds.
• The adoption of PURE technologies among SMEs and end users in Africa is limited primarily by inadequate financing and high initial costs.

APA

World Resources Institute (n.d.). Unlocking Local Private Capital to Finance the Productive Use of Renewable Energy (PURE) Sector – a Look at East African Local Financial Institutions (LFIs). https://www.wri.org/research/unlocking-local-private-capital-finance-productive-use-renewable-energy-pure-sector

Chicago

World Resources Institute. Unlocking Local Private Capital to Finance the Productive Use of Renewable Energy (PURE) Sector – a Look at East African Local Financial Institutions (LFIs). n.d. https://www.wri.org/research/unlocking-local-private-capital-finance-productive-use-renewable-energy-pure-sector.

Wikipedia

{{cite report |author=World Resources Institute |title=Unlocking Local Private Capital to Finance the Productive Use of Renewable Energy (PURE) Sector – a Look at East African Local Financial Institutions (LFIs) |url=https://www.wri.org/research/unlocking-local-private-capital-finance-productive-use-renewable-energy-pure-sector |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendunlocking, author = {{World Resources Institute}}, title = {{Unlocking Local Private Capital to Finance the Productive Use of Renewable Energy (PURE) Sector – a Look at East African Local Financial Institutions (LFIs)}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/unlocking-local-private-capital-finance-productive-use-renewable-energy-pure-sector}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }