project

PEG Africa

Country: Ghana
Technology: Solar PV
Business model: SHS

ElectriFI subscribed to a USD 5 million junior debt in PEG Africa to finance its distribution of Solar Home Systems in Ivory Coast and Ghana as well as its expansion to Senegal. The ElectriFI financing is accompanying a capital increase and both are catalysing a senior debt tranche involving CDC group. In September 2020, ElectriFI invested additional EUR 1.27m in West African leading off-grid asset financing company PEG Africa to further grow its footprint in Ivory Coast.

First investment:

Contract Signature: September 2019
Countries: Ghana, Ivory Coast, and Senegal
Total ElectriFI Financing: EUR 5M
Status: exited

Follow on investment:

Contract signature date: September 2020
Total ElectriFI Financing: EUR 1.27 m
Status: exited

Environmental and Social Category: B

(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk

About the project:

EDFI ElectriFI participated in PEG Africa’s USD 25m Series C round with a USD 5 million junior corporate debt that will enable the company to further grow its footprint in Ghana and Ivory Coast while at the same time it will pursue further international expansion into Senegal and other markets.

ElectriFI contracted in September 2020, an additional USD 1.5 million junior corporate debt to enable the company PEG Africa to further grow its footprint in Ivory Coast. This is EDFI ElectriFI’s second investment in the company, after participating with a USD 5 million junior corporate debt in PEG Africa’s USD 25m Series C round in 2019.

Starting commercial activities in 2015, PEG is the leading company deploying and financing solar to off-grid homes in West Africa, distributing industry-leading Pay-As-You-Go solar home technology to consumers who lack both access to reliable electricity and formal banking services. PEG has over 75 000 customers, over 450 full time staff working in 72 service centres across Ghana, Ivory Coast, and Senegal. ElectriFI will provide 20% of the financing required to grow the customer base up to around 128 000 customers, meaning providing access to electricity to more than 640 000 people. PEG is expected to employ 750 people by the end of 2020 and to have more than 1000 direct sales agents active in the field.

At a glance