[2021 Asia Finance Forum] Choi Ji-woo "Impact Investing That Restores Human Dignity"

Choi Ji-woo, Deputy Director of the Private Sector Institutions at the Green Climate Fund, is giving a lecture on the 25th at the Grand Ballroom of the Westin Chosun Hotel in Jung-gu, Seoul, at the '10th 2021 Seoul Asia Financial Forum' hosted by Asia Economy. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Junho Hwang] "Impact investment is an investment that restores human dignity."

Choi Ji-woo, Deputy Director of the Private Sector Institutions at the Green Climate Fund (GCF), said this while explaining one of GCF's impact investment projects in Africa, the "Solar Home System," during a lecture on "Sustainable Investment and the Future" at the third session of the '2021 Seoul Asia Financial Forum' held on the 25th at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul.

GCF is conducting investment projects in standalone solar power companies in Africa. In Rwanda and Kenya, over 70% and 80% of the population, respectively, live without access to the power grid. They live by buying kerosene fuel to light lamps. GCF invested in a joint venture between a company producing products (Solar Home Systems) that connect 3 to 4 small solar panels with batteries to power 3 to 4 household light bulbs, and a telecommunications company equipped with a mobile payment system, supporting a business that sells systems to light homes through solar power.

Deputy Director Choi said, "The panel system costs about 100 dollars, but it can be purchased for 10 dollars, and the remaining amount can be paid back through the mobile payment system when money is available or in regular installments." He added, "There were concerns that investors might not recover the purchase costs, but as the ecosystem of home appliances linked to the system expanded, consumer loyalty increased, and no problems occurred."

Initially, people buy this system to light their homes at night. However, once the bulbs start lighting and part of the system purchase cost is repaid, they want to charge smartphones or watch radios and TVs. According to Deputy Director Choi, companies continuously release products to satisfy these desires, which brings profits to businesses and improves the quality of life for households.

Deputy Director Choi said, "Ultimately, this serves as a stepping stone for households and society to advance by climbing the energy ladder," adding, "Through this, electricity has been supplied to 15 million households, enabling 75 million people to use electricity."

This content was produced with the assistance of AI translation services.