Vitalite Zambia secures USD 1,5 million from EDFI ElectriFI to support its growth
EDFI ElectriFI, the EU-funded Electrification Financing Initiative, is committed to invest a USD 1,5m convertible note in Vitalite Zambia, the pioneer of pay-as-you-go (PayGO) solar home systems distribution in Zambia.
The EDFI ElectriFI investment in Vitalite Zambia falls under its dedicated window for Zambia, a strategy funded by the 11th European Development Fund for Zambia and designed specifically for the country, in close collaboration with Government, local authorities and the EU Delegation to Zambia and COMESA.
Vitalite is a Solar home System distribution company that was created to increase rural electrification and combat the poverty tax affecting low-income, energy-poor households across Zambia. The company started operations in 2014 and was the pioneer of a fully integrated pay-as-you-go service in the country. Currently, Vitalite has 39 hubs split over the 10 provinces, they employ 150 Zambian residents, and they work with 600 field agents. Thanks to EDFI ElectriFi’s investment, Vitalite is now focusing on its growth: they plan on distributing 100k SHS over the next 4 years, granting access to clean energy to more than half a million people in the country. Moreover, as the company grows, it plans on hiring some 165 new employees and up to 1.100 new agents over the next 4 years.
EDFI ElectriFI will provide an USD 1,5m convertible note that will be automatically converted into an equity stake of the Company upon the next qualified equity raise of the Company. This investment will provide Vitalite sufficient runway to focus on its operations for the next years, before working on its next fund raising.
“We are proud to support a company that has such a strong impact on the lives across all of Zambia, bringing access to clean and reliable electricity to many off-grid communities in the country. Vitalite will also continue to strengthen its team, with a direct positive impact on local employment. Zambia is a very important geographical priority for ElectriFI and we are delighted to add Vitalite to our portfolio of promising companies. We are confident that this financing will perfectly complement the grant that Vitalite secured from Beyond the Grid Fund for Africa.” explained Quentin De Hoe, ElectriFI Senior Investment Officer at EDFI Management Company.
“We are thrilled to have EDFI as a partner on our journey towards providing clean and affordable energy to everyone in Zambia. The USD 1,5m investment will help accelerate our growth and allow us to continue leading the way in enhancing lifestyles and inducing productivity for over 500,000 people in the coming years through our innovative off-grid power solutions.” said Jonatan Ala-Mutka, Managing Director, VITALITE Zambia.
- Notes to Editors
About EDFI ElectriFI
EDFI ElectriFI is an EU-funded impact investment facility, financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets. EDFI ElectriFI, is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs). https://www.electrifi.eu/
About Vitalite Zambia
Vitalite was created to increase rural electrification and combat the poverty tax affecting lowincome, energy-poor households across Zambia. The company’s mission is to make quality products and services accessible and affordable to all Zambian households. Vitalite’s business success in sparsely populated rural areas is attributed to its strong agent distribution model that covers all 10 provinces in the country. https://www.vitalitegroup.com