Two development finance institutions, the IFC and Dutch development bank FMO, announced they have joined Investec Asset Management in backing Mobisol, a provider of off-grid solar systems in Africa. The combined investment from both institutions totals €14.62 million or a little over $15 million.
In October this year, Africa Capital Digest reported that Investec Asset Management had made a significant, if undisclosed, private equity investment in the Berlin-based company which planned to use the capital to support its expansion plans in its existing markets of Rwanda and Tanzania as well as it plans to start penetrating the Kenyan market. The additional capital raised from the IFC and FMO will used to further support these expansion ambitions.
FMO is investing a total of €9.2 million through its Access to Energy Fund and the MASSIF Dutch Government fund while the IFC will be providing the balance of €5.42 million in equity.
To date, Mobisol has installed more than 67,000 pay-as-you-go solar home systems in Rwanda and Tanzania, providing some 330,000 customers with cost-effective, efficient power for household and small business use. The payment model allows the cost of an entry-level Mobisol system to be at a similar level to that incurred by customers using traditional sources of energy including kerosene, candles, batteries and mobile phone charging.