The main objective of this project is to conducts and analysis of portfolio, using a wide set of key performance indicators. Evaluate the effectiveness of portfolio metrics in collection efficiency and financial health. The project also aims to evaluate the firms’ credit risk management practice. Evaluation of pre-sale assessment, in particular how to assess a potential customer’s ability to pay.
Moreover the project support the client to develop a comprehensive map of credit risk mitigation practices. Identify areas of strength, breakdowns, potential vulnerabilities, and areas of possible improvement.
The project strengthened the risk management procedures of the selected firms, all of which provide vulnerable poor African households with solar equipment and solar-powered appliances (e.g. LED bulbs, radios, irrigation systems, phone chargers, etc.). Frankfurt School identified a number of vulnerable areas in the firms’ credit and operational risk management and supported them in the development of adequate risk management processes as well as customer and portfolio assessment tools. Besides, we have equipped risk managers with expertise to further improve the companies’ risk management framework.
Strengthening the firms’ risk management, Frankfurt School has contributed to the sustainable provision of clean and affordable energy to vulnerable off-grid households. That has a direct impact on not only climate but also creates better educational opportunities (e.g. through light provision during the evening hours), hence directly contributing to the reduction of inequalities.