<< Go back to report

Essential Services

Developing sustainable business models for low-income customers

Universal access to clean water, electricity, education, and health care are essential for poverty reduction and development. But reliable delivery of these services entails sustainable business models and identifying a consistent way for millions of poor people to pay for the services. CGAP is examining sectors of the real economy where finance plays an enabling role. We provide insights and guidance on what business models work and examine ways to create digital financial ecosystems that are increasingly important as a catalyst for development.

Open APIs

CGAP has partnered with five digital financial services providers to open their APIs to third parties, catalyzing 7,000 developers to explore their use. So far, 116 of them are actively using APIs to deliver solutions to customers. For example, School Pay in Zambia targets low-income customers to help them more easily pay school fees, and SafeBoda in Uganda allows people using motorbike taxis to pay digitally.

PAYGo Solar

Digital accounts allow low-income customers to pay monthly for solar energy, making electricity accessible and affordable. But to expand and prosper, PAYGo solar business models need to be sustainable. CGAP is developing a set of key performance indicators for asset finance firms, in partnership with the International Finance Corporation's Lighting Global and the solar energy association GOGLA, to help funders better evaluate business investment opportunities. We also have worked with seven asset finance companies on credit risk management practices and partnered with six providers to assess credit risk in response to the COVID-19 crisis.

Digital Ecosystems

CGAP’s work on digital financial ecosystems in East Africa, Zambia, Ghana, Jordan, Lebanon, Myanmar, Bangladesh, Indonesia, and Colombia has informed our publications on building interoperable payment systems and connected markets.