West Africa’s asset financing solar company PEG Africa has raised USD 4 Mn in debt, in a round led by UK’s development financial institution, CDC Group.
The company finishes its first 12 months in Senegal profitable and this latest round of funding will be used to expand its operations in the country. PEG Africa has gained thousands of customers in Senegal and this funding will be useful in doubling down on the growth it has seen in the country.
“Senegal has been growing far quicker than expected, and has reached profitably within its first year,” said PEG Africa chief executive officer (CEO) Hugh Whalan. “With the continued backing of CDC Group, we expect our growth in Senegal to continue. Importantly, we believe that we will be able to apply our learnings and expansion playbook to yield superior results as we grow into future markets.”
Just last month, the solar company had raised USD 5 Mn from ElectriFi initiative to finance its expansion in West Africa where it currently serves 400,000 daily users in Côte d’Ivoire, Senegal and Ghana.
Prior to this, PEG Africa had raised USD 25 Mn Series C funding from CDC Group and existing investors SunFunder and responsAbility.
“CDC is pleased to back PEG Africa to help fuel their expansion in Senegal. We’re proud of our partnership with PEG, which is bringing the phenomenal impact of pay-as-you-go solar to new and underserved markets in West Africa with a focus on financial sustainability and innovation,” said Geoffrey Manley, Director, Head of Energy Access and Efficiency at CDC Group.
CDC Group has invested in many other projects geared towards increasing access to electricity in Africa. Last year, it partnered with Globeleq, an independent power producer, to invest USD 66 Mn in developing a solar PV plant in Kenya. Earlier this year, CDC Group launched Gridworks, mandated to invest over USD 300 Mn in electricity networks across Africa.
Two-thirds of Africans still lack access to electricity and various players such as PEG Africa are coming in an attempt to increase access to electricity.
Founded in 2013 by Hugh Whalan and Nate Heller, PEG Africa provides solar home systems to households that are not electrified in West Africa using the Pay-As-You-Go (PAYG) model. Apart from the solar home systems, the company also provides solar irrigation pumps.
Before starting the company, Whalan and Heller ran Impact Energies in Ghana, a solar financing company that was acquired in 2013 in the first off-grid solar exit in Africa.
Feature photo courtesy: PEG Africa