Pay-as-you-go solar pioneer Azuri Technologies and the Electrification Financing Initiative (ElectriFI) will feature at the UN Climate Change Conference COP24 this week to showcase how innovative financing in the off-grid solar sector is helping millions across Africa access affordable, renewable, clean energy.
Azuri announced last year an innovative US$20 million off-balance-sheet multi-phase debt financing programme to provide working capital for the expansion of off-grid energy and service provision in East Africa. The first phase of US$4 million comprises of investment from the EU programme Electrify and is currently being rolled out in Kenya.
“The support from ElectriFI has been a key enabler for the African off-grid sector, providing both essential debt finance and a framework that is now being followed by commercial investors” said Azuri CEO Simon Bransfield-Garth.
Dominiek Deconinck, Fund Manager ElectriFI added: “A major barrier to investments in access to energy in developing countries is the lack of working capital finance. ElectriFI is delighted to be supporting the off-grid energy sector in sub Saharan Africa and providing catalytic finance that will help improve the conditions for mainstream investment in this underfunded sector.”
The Azuri financing program allows commercial debt to be raised and secured against the future revenues of Azuri customers. ElectriFI was pivotal in the creation of this receivables financing scheme, investing alongside other commercial lenders.
Over 600 million people in Africa have no access to electricity. Azuri, with the help of its financing partners, is tackling this crisis head on through award-winning solar innovation that is delivering reliable, renewable and distributed power on an affordable pay-as-you-go basis.
Azuri has been a leading provider of pay-as-you-go-solar home solutions in Kenya since 2012. The pay-as-you-go sector is growing rapidly, and its continued expansion will require access to substantial levels of commercial debt capital, such as that initiated by ElectriFI.
About Azuri Technologies Ltd.
Azuri Technologies is a leading commercial provider of PayGo Solar Home Systems to rural off-grid communities. With a presence in both East and West Africa, Azuri is leveraging solar and mobile technology to allow users in 12 different countries to access renewable, distributed power on a pay-as-you-go basis. Azuri’s HQ is located in Cambridge, (U.K.), with substantial regional offices in Africa, including an East African HQ in Nairobi and a West African HQ in Lagos.
The Electrification Financing Initiative (ElectriFI) is a flexible tool to unlock, accelerate and leverage investments to increase and improve access to affordable, reliable, sustainable and modern energy, by providing support throughout all stages of a project’s business cycle.
It is an investment facility initiated by FMO, the Dutch Development Bank, and implemented by the EDFI Management Company, the fund manager of the Association of European Development Finance Institutions (EDFI). ElectriFI is funded by the European Union (along with a USD 10mln contribution from Power Africa targeting exclusively the sub-Saharan African region).
ElectriFI provides a comprehensive and inclusive platform for investment support services, rendering due attention to bankability at very early stages, whilst facilitating access to senior debt at later stages.