Speeding Up Solar Energy Access for Rural Communities in Côte d’Ivoire
EDFI ElectriFI announces follow-on investment in PEG Africa
In 2019, EDFI ElectriFI closed a junior loan transaction of USD 5 m to support PEG Africa’s expansion into West Africa. Today, the EU-funded facility is topping up the investment with USD 1.5 m dedicated to Côte d’Ivoire.
Brussels, 18th November 2020. EDFI ElectriFI, the Electrification Financing Initiative funded by the EU, is reiterating its support to PEG Africa and its solar home systems solutions by subscribing to a USD 1.5 m junior corporate debt in the company.
Since EDFI ElectriFI’s initial investment in 2019, PEG Africa, the leading off-grid asset financing company in West Africa, facilitated energy access to nearly 100 thousand households. Not only did the company provide them with PAYGO solar solutions, it also installed a capacity of 2.14 MW (100% renewable sources), made available to low income populations in rural areas. PEG Africa has also qualified as a 2X Challenge UPvestment – an initiative of G7 and other DFIs to collectively mobilize $3 billion in commitments that provide women in developing country markets with improved access to leadership opportunities, quality employment, finance and enterprise support among others. This is done with CDC group (Commonwealth Development Corporation) with the aim to advance women in leadership, meaningfully support its female employees and implement a targeted strategy to increase the number of female customers. The company’s improvements in gender diversity have been driven through an extensive action plan benefiting from technical assistance by Power Africa.
From a financial perspective, the investment is further catalysing senior debt provided by a syndicate of lenders composed of European DFIs (CDC group) and private investors.
Over the last five years, PEG Africa has established 80 service centres across Ghana, Côte d’Ivoire, Senegal and recently in Mali. EDFI ElectriFI’s top-up will allow the company to distribute industry-leading PAYGO solar home technology to consumers who lack access to reliable electricity in Côte d’Ivoire. EDFI ElectriFI follow-on investment is expected to unlock additional funding to support the company expansion including the distribution of productive use appliances powered by off-grid solar such as solar water pumps that will be financed to smallholder farmers wanting to increase their productivity.
“In the current Covid-19 context, EDFI ElectriFI is proving to be a key instrument to support African businesses active in the off-grid sector. As a result of close interactions with PEG over the last quarter, we were able to offer them a fast and flexible solution adapted to their needs. By increasing our investment in PEG Africa, we send a positive signal of trust to their team but also to stakeholders active in energy inclusion,” explained Lionel Dieu, ElectriFI Senior Investment Officer at EDFI Management Company.
“This investment from EDFI ElectriFI was remarkably quick and it has been important in allowing PEG to continue to fund its profitable growth during these difficult times. We are also excited to be able to expand our productive use offering such as solar water pumps to Ivorian smallholder farmers, which allows them to increase incomes through higher agricultural yields”, said Hugh Whalan, PEG Africa CEO.
“The European Union is committed alongside the private sector to develop renewable energies and access to electricity in Côte d’Ivoire. PEG has already made it possible to electrify nearly 140,000 Ivorians with renewable energy, and to create 160 permanent jobs and more than 250 temporary jobs. This is the aim of the External Investment Plan, which allows for better mobilisation of private sector investment to achieve sustainable development goals”, said Jobst von Kirchmann, Ambassador of the EU in Côte d’Ivoire.
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About EDFI ElectriFI
EDFI ElectriFI is an EU-funded impact investment facility, financing early stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets.
EDFI ElectriFI, is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs). It benefits from additional support from Power Africa (targeted at sub-Saharan Africa) and Sweden.
About PEG Africa
Since commercial launch in 2015, PEG has become West Africa’s largest and fastest-growing independent provider of distributed energy products and services, distributing PAYG solar technology to consumers and micro-businesses lacking access to reliable electricity.
As of June 2020, PEG has served nearly 100,000 households, employs over 490 full time staff and operates 80 service centres across Ghana, Côte d’Ivoire, Senegal and recently in Mali.
- Monika Hoegen – EDFI Management Company
- Hugh Whalan – PEG Africa hwahlan@pegafrica.com