Oikocredit invests US$7 million in Solarise Africa to support affordable solar access for businesses in Africa

Amersfoort, the Netherlands – Oikocredit has partnered with Lion's Head Group-managed funds, the Facility for Energy Inclusion (FEI) and AfricaGoGreen (AGG), to invest US$ 7 million in a US$ 33.4 million multi-currency loan facility for Solarise Africa. The investment will support Solarise Africa's growing provision of affordable commercial and industrial (C&I) solar installations in Africa. 

With this investment, Solarise Africa will offer more solar installations and energy efficiency solutions for small and medium enterprises and other businesses in multiple African countries, contributing to job creation, financial savings and CO₂ reduction.  

FEI acted as the lead arranger for the loan, investing US$ 21.4 million, followed by Oikocredit with US$ 7 million and AGG with US$ 5 million.

This deal continues Oikocredit's commitment to C&I solar transactions, which are crucial in meeting global climate targets.

Dhriti Bhatta, Renewable Energy Investment Officer at Oikocredit, said: "We are delighted to support Solarise Africa in partnership with FEI and AGG in scaling up its C&I solar and energy efficiency solutions. Solarise is creating a much-needed demonstration effect among SMEs and other businesses of the benefits of affordable solar and is increasing their financial resilience with savings. We look forward to a long-term partnership.”

Orli Arav, Head of Debt Funds at Lion's Head Group, said: "FEI as lead arranger is proud to have partnered with Oikocredit and AGG on this transaction to support the growth of Solarise Africa's C&I portfolio. This multi-country loan will allow Solarise Africa to solidify its position in the commercial and industrial solar market in Kenya, expand its activities and increase its footprint in other countries in Africa."

Jan Albert Valk, CEO and Co-founder at Solarise Africa, said: "We are very honoured and grateful for the confidence the investors have shown in us. As the largest debt raise in Africa's C&I space to date, this proves that Solarise Africa has a solid business model. We are proud to welcome these three prestigious new investors – FEI, Oikocredit and AGG – to our current group of investors. Throughout 2022, we have significantly grown our footprint and portfolio, and with this new loan we will be able to catapult our efforts to advance renewable energy adoption for SMEs in Africa."

About Solarise

Nairobi-based Solarise Africa is a pan-African energy-as-a-service company that provides reliable and affordable decentralised energy solutions for businesses in Africa. Through close collaboration with its partners, the company offers innovative full-service solutions that cover designing, building, financing and maintaining renewable energy installations.

Solarise was nominated as African Solar Company of the Year in the 2022 Africa Solar Industry Association (AFSIA) Solar Awards.

For more information:http://solariseafrica.com/.

About Oikocredit

Social impact investor and worldwide cooperative Oikocredit has 47 years of experience funding organisations active in financial inclusion, agriculture and renewable energy.

Oikocredit's loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.

Oikocredit finances over 500 partners, with total outstanding capital of € 1,049.3 million (at September 2022).

For more information:www.oikocredit.coop.

About Lion's Head Group

Lion's Head is an investment bank and asset manager operating across frontiers and emerging markets and managing several pioneering funds with investments in 27 African countries. Among these funds, the Facility for Energy Inclusion (FEI) supports small-scale independent producers delivering power to the grid, mini-grids, commercial and industrial, and captive power projects. FEI was set up by the African Development Bank, including with investment on behalf of the Clean Technology Fund and the European Commission, and has also received equity funding from Norfund and the German Federal Ministry for Economic Cooperation and Development through KfW.

AGG was established by KfW and has received funding commitments from the German Federal Ministry for Economic Cooperation and Development through KfW in addition to funding commitments from the African Development Bank, NDF, SEFA, Calvert Impact Capital and the IFC.

For more information: www.lhgp.com/our-funds.

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Note for editors

For more information or to request an interview, please contact: Viviana Cordero, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: vcordero@oikocredit.org.