Solar home systems
East and Southern Africa Trade and Development Bank (TDB) is pleased to announce the closing of a $ 4.2 million transaction with Sunspot Energy Kenya Limited (operating as Spark Possibilities) , to finance new solar home systems in Kenya.
The funding will allow Spark Possibilities to offer an expanded range of solar power solutions to more households in Kenya and to penetrate other markets in sub-Saharan Africa. The relationship highlights the potential for increased private sector engagement, access to improved, reliable and affordable electricity, and contributes to the achievement of several Sustainable Development Goals (SDGs), including SDG 7 Affordable and clean energy, l ‘SDG 5 Gender Equality and SDG 13 Climate. Action.
This transaction is supported by TDB’s $ 75 million Off-Grid SME Facility, in turn supported by a $ 415 million World Bank Regional Infrastructure Finance Facility (RIFF) signed with TDB in 2020 – the first of the kind to be extended to regional development by the International Development Association (IDA) of the World Bank. Through this facility, TDB finances long-term infrastructure projects, particularly in renewable energy, including those of micro, small and medium-sized enterprises (MSMEs) in need of debt financing.
Founded in 2016, Sunspot Energy Kenya Limited provides affordable, high-value and reliable Pay-Per-Use (PayG) solar home systems to customers in rural and semi-rural communities in Kenya. Sunspot has grown primarily through private sector funding without any significant support from grants, philanthropic or government programs. As a certified B Corp, the company’s core business model contributes to ethical and environmental goals that align with multiple SDGs. As part of its commitment to local development, most of Sunspot’s staff are under 30, 99% of its staff are Kenyan and half of its staff are women. To date, Sunspot operates in 12 Kenyan communities.
Admassu Tadesse, Chairman Emeritus of TDB and Group Chief Executive Officer noted: “In line with TDB With the gradual growth of green energy and SME portfolios, the Bank has broadened its range of innovative low-carbon product offerings for its clients, including for MSMEs in the region it serves. With 25% of the Kenyan population still lacking access to electricity and almost 30% in rural areas, we are delighted to fund Spark Possibilities to build more solar home systems, enabling those who have the most. need to run their business, study and improve. their standard of living in general.
“With 1,200 jobs expected to be created by the end of 2022, including 700 representatives in local communities, 40% of whom are women, Spark Possibilities is emerging as a high impact business which, in addition to reducing the electrification deficit, empower young people and women. in rural and semi-rural areas. We are delighted to be part of their history ”, added Michael Awori, Deputy Managing Director and COO of TDB. “Through this transaction, we look forward to working together to contribute to a triple impact on our bottom line in our region. “
“This funding marks a new chapter”, commented Hal Peters, CEO and Co-Founder of Sunspot Energy Kenya Limited. “Having TDB as a long-term partner sets the bar even higher for our young company, which plans not only to expand its presence in Kenya, but also to expand into new sub-Saharan countries in 2022. With this transaction , TDB has visibly demonstrated its expertise in creating an innovative and tailor-made debt structure. It is important to clearly understand the potential financial capacity along the company’s growth path – TDB has a great team, and we are delighted that they are our financial partner.