To provide Tanzania with Affordable Solar Energy, d.light has Secured $125 Million
Posted on : Wednesday, 13th September 2023
The Eastern and Southern African Trade and Development Bank Group (TDB) has granted $30 million to d.light, which offers eco-friendly goods and the funding to low-income households worldwide. With this funding, d.light will be better able to expand Tanzania's availability of renewable energy by purchasing up to $125 million of receivable assets.
The funding will be used to expand the business's securitized financing facility in Tanzania and its Pay-Go personal finance service, which enables low-income households to buy the company's reasonably priced solar-powered home products. This growth will be especially beneficial for supplying the off-grid solar items that are required in the nation's most disadvantaged communities.
According to Nick Imudia, CEO of d.light, "This new financing from TDB gives us the additional funding to reach more low-income families and households in Tanzania via our Pay-Go business, in a way that is affordable for our customers and sustainable for our business." Securitization is a crucial fiscal tool for assisting African nations in achieving the Sustainable Development Goals for electricity access since it is a scalable form of funding. In 2023, anticipate d.light expanding this facility into additional significant sub-Saharan African markets.
Michael Awori, the CEO of TDB, claims that d.light's Pay-Go concept would reach approximately 1.7 million consumers by 2022. Through the usage of solar energy, the company also generated over 2,000 jobs and prevented the release of 1.3 million tonnes of carbon.
A Equitable Energy Transition is Assured by d.light
Only 40% of Tanzania's population, according to the World Bank, has access to electricity because of poor grid connectivity and inconsistent power delivery in several regions of the nation.
Since 2008, d.light has been selling its goods there and the country's finance facility uses payments from its clients to expand the business's reach and increase its market share within Tanzania. The solar sector has experienced tremendous growth recently and research from d.light suggests that this growth might be used to promote more equitable access to energy on a worldwide scale.
The company will also use the incoming money for financing Brighter Life Tanzania 1 Limited, which will increase its off-balance sheet securitization structures, along with its lending partner, Africa Frontier money.
According to Eric De Moudt, founder and CEO of AFC, "These social impact securitizations are helping d.light bring financial inclusion and access to dependable and clean energy to millions of people while also helping to ensure a just and equitable energy transition that benefits everyone."
