PEG Africa (Follow on)
Investment name: PEG Africa
Status: Approved investment
Total ElectriFI Financing: EUR 1,27 m
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Created in 2013, and starting commercial activities in 2015, PEG is the leading off-grid asset financing company in West Africa, distributing industry-leading PAYG solar home technology to consumers who lack both access to reliable electricity, most of them (84%) in rural areas. As per June 2020, PEG has served over 91,853 customers, over 490 full time staff and 80 service centers across Ghana, Côte d’Ivoire, Senegal and recently in Mali. The transaction consists in a top-up junior facility earmarked for Côte d’Ivoire. PEG is expected to have 750 FTE toward end of 2020 and to have more than 1000 direct sales agents active in the field.
Why ElectriFI wants to fund this project:
PEG Africa is now raising funds with investors. ElectriFI will subscribe to a USD 1.5mln junior corporate debt. This enables the company to further grow its footprint in Côte d’Ivoire.
ElectriFI is supportive of PEG’s SHS business model as it replacing kerosene and solar lanterns while bringing high-quality, stable, low cost, clean energy to remote rural BoP households, with a high additionality both in terms of financial and E&S impact.
Environmental and Social Rationale:
The Project is rated category B. Activities come with limited adverse risks associated with waste management and battery disposal. IFC Performance Standards 1 to 4 can be triggered. PEG has developed and is currently implementing a management system to address the social and environmental risks and potential negative impacts of their activities.