SWOT Analysis of Solar Pumping Finance Fund (PV Fund)

Sudan is a country with a great abundance of fertile and arable land as well as water resources. However, unstable Nile levels and seasonal rain limit agricultural spans in the year, and agricultural activities far from river banks make it necessary to use underground water. Photovoltaic water pumping systems have been available in Sudan from early times, however high up-front costs for initial investment contributed to halting widespread use of the systems. A recent project developed by the United Nations Development Program (UNDP) in Sudan, the PV fund, incentivizes the deployment of such systems for farmers by introducing a low-risk finance mechanism. This paper aims to conduct a Strengths, Weaknesses, Threats, and Opportunities (SWOT) analysis on this finance mechanism, and further propose recommendations and alternatives. The study concluded that the strengths are not requiring the beneficiary to provide any guarantees to obtain finance, solving the problem of high-cost PV pumping, distributing risks to the financiers, and attracting farmers and beneficiaries because the repayment period is 4 years. The weak point is the long-term operability. It also provides future opportunities for banks and financial institutions to finance the mechanisms of pumping water, which helps industrial and urban development. The main threats are the government, inflation, fluctuating exchange rates, and difficulty in pricing equipment.