By Dipo Olowookere
A $176 million securitization facility aimed at providing affordable off-grid solar in Kenya, Tanzania and Uganda has been secured by d.light.
The off-grid solar provider is expected to use the funds obtained from a notable impact investor, African Frontier Capital (AFC), to support consumer loans for solar and high-efficiency appliances in East Africa.
About six million people across the three countries are expected to benefit from the multi-currency loan over the next three years.
A statement made available to Business Post explained that the facility would be used to scale up d’light’s PayGo consumer finance offering to make solar-powered products available to more low-income households and communities without access to electricity.
“This new facility is another landmark step in d.light’s mission to provide people with affordable energy that is also clean, safe and sustainable.
“It lets us expand our reach so that millions of off-grid families across Kenya, Tanzania and Uganda can experience the benefits of solar energy,” the chief executive of d.light, Mr Nedjip Tozun, said.
He confessed that, “Facilities like this make possible our pioneering PayGo consumer financing model with which we can offer solar home systems and high-efficiency appliances to the people that need them most in a way that is affordable and sustainable.”
“With this new facility, d.light has for the first time in its history receivables-based financing facilities in each of our PayGo markets – Kenya, Uganda, Tanzania, and Nigeria.
“These facilities allow d.light to remain consistently cash flow positive and remove the requirement for further external equity fundraising to fund our growth,” Mr Tozun added.
Also commenting, the founder of AFC, Mr Eric De Moudt, said, “This milestone is a testament to how data-driven financial innovation can play an important role in bringing financial inclusion to the world’s most vulnerable communities, helping them to gain access to clean and modern energy and the ensuing social and economic benefits that come about as a result.
“We are grateful to d.light for its ongoing leadership in the off-grid solar sector and proud to partner with such a visionary company.”
With this new facility, d.light has now closed securitized financing with a total combined purchasing value of $718 million across five separate facilities since 2020.