The Armenia Project uses an asset-backed loan model that enables agro-businesses to install solar stations and reduce the cost of food production.
Micro-enterprises in Armenia’s agribusiness sector often do not use modern mechanized processes, resulting in low productivity. Comparatively high production and electricity costs further constrain productivity. Installing a solar station could reduce overall production costs substantially, but many micro-enterprises cannot afford this US$10,000 investment
The Armenia Project aims to set up a financial model with the private sector to provide affordable access to credit for small and medium-sized enterprises (SMEs). Under this model, SMEs will be able to install solar stations and reduce their energy dependency and operational costs, potentially reducing electricity costs by 30 percent.
Project Armenia has selected twenty micro-enterprises operating in Armenia’s agribusiness sector and provided them with a subsidy worth 30 per cent of solar station installation in December 2022. The solar stations generated US$46,151 in savings in 12 months in 2023, which allowed for expansion plans and equipment upgrades of the SMEs. Going forward, the team will be conducting monitoring activities to assess the impact of using solar energy on the supported businesses and use these results to raise additional funds that will be used in similar initiatives and increase WFP’s impact in the country.
