Posted on :Thursday , 8th August 2024

A new $176 million securitised financing facility has been closed by off-grid solar product vendor d.light in order to support and grow its PayGo consumer loan offering in Kenya, Tanzania and Uganda.

The company claims that over the next three years, the facility will allow it to supply dependable, sustainable energy to an estimated six million people across three countries.  

The new funding is coming from African Frontier Capital, a social impact asset management company.

In 2020, d.light launched two securitised loan facilities in Kenya and one each in Nigeria and Tanzania to help lower the cost of its solar-powered household products in Sub-Saharan Africa.  

The combined purchase price of the new building and the current facilities is $718 million.

Nedjip Tozun, CEO of d.light, responded, "This new facility is another historic step in d.light's mission to provide people with affordable energy that is also clean, safe and sustainable." The announcement. It enables us to reach a wider audience and provide solar energy benefits to millions of off-grid families in Kenya, Tanzania and Uganda.

Our innovative PayGo consumer financing approach, which enables us to provide high-efficiency appliances and solar home systems to those in need in an economical and sustainable manner, is made possible by facilities such as these.

"For the first time in its existence, d.light now offers receivables-based financing options in each of its PayGo markets, including Kenya, Uganda, Tanzania and Nigeria," Tozun continued. With the help of these facilities, d.light is able to maintain a continuously positive cash flow and does not need to raise further external equity to fund its expansion.

According to Eric De Moudt, the founder and CEO of African Frontier Capital, this significant achievement shows how data-driven financial innovation can help the world's most vulnerable communities become financially providing them with access to contemporary, clean energy and the corresponding social and economic advantages.

"We are honoured to work with such a forward-thinking company and thankful to d.light for its continued leadership in the off-grid solar sector," he stated.