To strengthen its presence in the solar home kits market in Africa, PEG Africa has just raised $25 million from several investors.
PEG Africa wants to establish itself in the supply of solar kits to homes in Africa. The company has just raised $25 million from several investors to do so. In particular, the CDC Group, a development institution of the British government, which contributed the largest share: $20 million. In concrete terms, this British financial institution has set up a $15 million multi-currency facility, joined (to complement the $20 million in debt) by SunFunder Inc, a solar investment fund and ResponsAbility, a well-known fund manager in the African solar sector. The latter distinguished itself in October 2018 by investing $4 million in Redavia Ghana, the subsidiary of Redavia GmbH, a German company specialising in solar energy.
The remaining $5 million comes from the equity investments of Energy Access Ventures, Blue Haven Initiative, Investor & Partners, Acumen Fund, Total Energy Ventures and the Renewable Energy Performance Platform (REPP). PEG Africa is expecting a $50 million investment for its rollout on the African continent. The company, which employs more than 400 people, is currently marketing its solar kits in villages in Senegal, Ivory Coast and Ghana.
More than 60,000 electrified households
Since its creation in 2013, the company has already supplied solar kits to 60,000 households, or 300,000 beneficiaries. These kits consist of solar panels, LED bulbs and sockets for charging mobile phones. As is customary for most home solar systems companies, the kits are paid for according to the Pays-as-you-go model, i.e. a pay-per-use model, thanks in particular to the mobile banking system currently in vogue on the African continent.
Competition in the African solar kit market is becoming increasingly fierce. In addition to PEG Africa, which is growing stronger on the continent, other operators are investing in the sector. Bboxx, a young British company, is one of the most aggressive operators on the continent. In addition to the multiplication of partnerships, in order to boost its sales in Africa, a crowdfunding operation enabled it to raise 6 million euros last March. In addition, Bboxx recently joined forces with the giant French electricity company-Électricité de France (EDF) to conquer the solar kit market in West Africa. To electrify the townships in southern Africa, the company has also formed an alliance with DC Go, a local off-grid supplier. This means that Bboxx is a serious competitor for PEG Africa.