Mozambique’s Solar Works! Nabs USD 2 Mn From SunFunder For Energy Distribution
Mozambique-based pay-as-you-go solar home system and energy service company Solar Works! has raised USD 2 Mn in debt financing from SundFunder and US-based MFX Solutions.
The transaction, which gives credence to SunFunder’s intention to venture into new markets, was done using a multi-currency approach via its collaboration with the currency hedging company MFX Solutions.
While this was the company’s first transaction in the country, Mozambique is reported to have an electrification rate of less than 30 percent and limited availability of debt capital to support off-grid solar solutions.
According to a statement, the USD 2 Mn debt facility will allow the leading solar solutions firm directly impact 65,000 people with improved energy access while displacing no less than 26 tonnes of CO2 emissions.
We have closed a $2m multi-currency debt facility with @mfxsolutions & SolarWorks! to accelerate growth of off-grid energy in Mozambique. The financing is expected to directly impact the lives of 65,000 people and displace at least 26 tons of CO2e! https://t.co/53RdlbTCdV
— SunFunder (@SunFunder) January 17, 2019
The funds will also be used as working capital to accelerate Mozambique’s growth, and SunFunder intends this to be the beginning of a long-term financing relationship to increase energy access across the country.
Solar Works! CEO and co-founder, Arnoud de Vroomen, expressed the firm’s pride to have closed the facility while appreciating SunFunder’s vision for impact and long-term financial relationships.
Throwing light on the Mozambique situation and the development, he said: “The potential of our region is enormous so partners like SunFunder are of crucial importance in order to have a large-scale impact on millions of lives, and at the same time deliver good returns for our finance partners”.
Solar Works! kicked off operations in Mozambique in 2011, and has recently expanded into Malawian territory. The startup is a provider of basic solar home systems comprising lights and charging ports that power phones radios and low-power appliances. The company also supplies more powerful models that can support SMEs and middle-income households with reliable electricity.
October 2018, Solar Works! raised € 2 Mn from wind power producer EDP, with participation from Persistent. This raise which was used for expansion in South Africa was preceded by a 2o17 seed grant reception from the GSMA under the Mobile for Development Utilities Innovation Fund.
The recent debt facility to the solar company is SunFunder’ second for 2019, having given USD 9 Mn to Uganda-based SolarNow recently – a round in which co-lenders responsAbility and Oikocredit participated. This solar-focused lender raised USD 25 Mn in 2018 from Overseas Private Investment Corporation (OPIC), as part of its commitment to its USD 100 Mn Solar Energy Transformation Fund.
Towards the same facility, SunFunder also raised an undisclosed amount from the Shell Foundation.
We are delighted to have closed a new equity round with @Shell alongside existing investors @SchneiderA2E & @BetterVentures – a new footing to make investing in energy access mainstream https://t.co/MLTJ3tZhkc pic.twitter.com/MGvPh9UAc5
— SunFunder (@SunFunder) June 11, 2018
Featured Image: Advance Consulting
