The off-grid solar sector in Senegal has been affected by the Covid-19 pandemic. On the supply side, GOGLA sales data shows there was a 32 per cent decline in sales in the first half of 2020, with cash sales being the most affected. On the positive side, there is increasing interest in the productive use sector, especially solar irrigation pumps, and demand is expected to rise.
The government has begun to show more interest in the role that solar energy can play in increasing energy access in the country. The recent exemption of some solar products and components from the 18 per cent VAT is a testament to this. Additionally, a number of solar companies have partnered with microfinance institutions to offer consumer financing. Access to finance for these companies to scale up their business is however limited with local commercial banks asking for often unaffordable collateral for loans. However, there are several development partners actively supporting the sector,