d.light has secured a $176 million solar facility from African Frontier Capital to enhance off-grid solar energy access in Tanzania, and two other countries. This funding will expand d.light's PayGo consumer finance offering, making solar-powered products more accessible to low-income households.
Paving the Way for Affordable Off-Grid Energy in Tanzania
d.light, a global provider of affordable and transformational household products has successfully secured a $176 million securitisation facility aimed at enhancing off-grid solar energy access in Kenya, Tanzania, and Uganda. This significant financial boost which was provided by African Frontier Capital (AFC), is set to broaden the reach of d.light's PayGo consumer finance offering. This financial aid will facilitate the distribution of solar-powered products to low-income households in these East African countries.
The newly acquired solar facility will purchase receivables in Kenya, Tanzania, and Uganda, marking a pivotal advancement in providing off-grid solar energy to communities lacking access to electricity. The PayGo consumer finance model is specifically designed to make solar-powered products more accessible, offering an innovative solution to millions of households that struggle with energy access.
Nedjip Tozun, CEO of d.light, lauded the new facility as a landmark achievement in the company’s mission to deliver clean, safe, and sustainable energy. He emphasized that the financing will enable d.light to expand its reach; allowing millions of off-grid families across these three countries to benefit from reliable and renewable energy. The multi-currency solar facility aims to deliver solar power to an estimated six million people over the next three years, underscoring the transformative potential of this initiative.
Strengthening Financial Security for Solar Investments
This new facility adds to d.light’s impressive track record, with the company having secured a total of $718 million across five securitized financing facilities since 2020. This success highlights d.light's ability to leverage securitized finance to support the distribution of solar-powered household products in sub-Saharan Africa.
Brighter Life Kenya 1 Limited (BLK1), d.light’s $110 million securitization facility repaid its senior debt in full ahead of schedule using internally generated cash flows. This milestone in the off-grid solar sector demonstrates the potential of data-driven financial innovation to foster financial inclusion and provide modern energy solutions to vulnerable communities.
Eric De Moudt, founder and CEO of AFC, highlighted the role of data-driven financial innovation in bringing financial inclusion to the world’s most vulnerable communities. He expressed gratitude for d.light’s leadership in the off-grid solar sector and pride in partnering with such a visionary company.
Harnessing Tanzania’s Solar Potential
Tanzania is set to benefit significantly from d.light’s new $176 million solar facility. The country's abundant sunshine offers substantial potential for solar energy solutions. Increased demand for clean and reliable power has driven the adoption of solar technologies such as water heating and pumping systems. Support from the Tanzanian government further bolsters the attractiveness and sustainability of solar power.
Solar power systems in Tanzania not only provide eco-friendly energy but also result in considerable savings compared to traditional fossil fuels. These systems which were installed by various companies combine solar panels, inverters, and battery storage to meet a range of needs from residential to commercial and industrial applications.
The installation of solar systems in Tanzania involves several key steps; including site evaluation, system design, and electrical wiring. Essential equipment includes solar panels, mounting systems, inverters, and batteries.
Government initiatives, such as removing VAT and import taxes on solar components help make these systems more affordable and accessible. The incentives help both households and businesses to benefit from reliable and cost-effective solar energy solutions.
The $176 million securitization facility secured by d.light represents a significant step forward in expanding access to off-grid solar energy in East Africa. This initiative not only promotes financial inclusion but also supports sustainable development and environmental stewardship in these countries. With the continued support of partners like African Frontier Capital, d.light is well-positioned to drive positive change and improve the quality of life for countless families across the region.