PEG Africa, a pay-as-you-go (PAYG) solar company based in West Africa, has secured $5 million funding to expand across West Africa. The funding was secured from ElectriFI impact investment facility.
The newly secured funds will be used by PEG Africa to boost its existing markets. The funding from ElectiFI is tagged ‘junior debt’. Electrification Financing Initiative (ElectriFI) is sponsored by the European Union and managed by the EDFI Management Company. The initiative was established by 15 European Development Finance Institutions.
PEG Africa finances and deploys pay-as-you-go solar to consumers and SMEs across West Africa. The company’s financing model help consumers replace their appliances with those that depend on solar energy. PEG serves over 400,000 consumers across Ghana, Côte d’Ivoire, and Senegal, and recently branched into solar water irrigation and bigger solar power systems.
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PEG Africa’s CEO said, “PEG has almost doubled in size every year since 2015, and the fact we are now able to raise a significant amount of our funding in debt demonstrates that our approach is financially sustainable. We are delighted to work with ElectriFI to further accelerate our growth.”
Dominiek Deconinck, ElectriFI fund manager, said: “With 82,000 direct new connections by the end of 2019, adding not less than 1.7 MW with Solar Home Systems, ElectriFI’s investment in PEG will strongly contribute to improving the quality of life through renewable energy in the markets it operates in.”
He noted that the ElectriFI innovative financing is backed by UK DFI, CDC Group, and SunFunder. According to him, the parties provided $15 million senior secured debt facility in the local currency, earlier in 2019.
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