We developed a tool enabling Proparco to measure the impact of their renewable power investments

Proparco is a private sector development finance institution (partly owned by the French Development Agency AFD), that works to promote private sector investment in Africa, Asia, Latin America and the Middle East to reach the Sustainable Development Goals.

On behalf of the European Development Finance Institutions (EDFI), AFD Proparco invited us to design a tool that quantifies the income and employment impacts of renewable energy investments.

The methodology behind the tool was based on pioneering studies of the power sector that we carried out in the Philippines and Turkey (IFC), Uganda (CDC), and Nigeria (NIAF), as well as on the results of two case studies carried out for Proparco (Uruguay and India). These studies analysed how investments in power generation and distribution translated into more available, affordable, and reliable electricity, which in turn benefited businesses and led to job and income creation.

By quantifying the potential economic effects of power investments, the tool enables finance institutions to integrate the development impact perspective into their decision-making process.