- Solar PV
- Business model
Investment Name: PEG Africa
Contract Signature date: September 02 2019
Region: Sub-Saharan Africa
Country: Ghana, Côte d’Ivoire and Senegal
Sector: Solar PV- battery backup
Total ElectriFI Financing: 5 M EUR
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Starting commercial activities in 2015, PEG is the leading company deploying and financing solar to off-grid homes in West Africa, distributing industry-leading PAYG solar home technology to consumers who lack both access to reliable electricity and formal banking services. PEG has today over 75,000 customers, over 450 full time staff and 72 service centers across Ghana and Côte d’Ivoire and recently in Senegal. ElectriFI will provide 20% of the financing required to grow the customer base up to around 128,000 customers, meaning providing access to electricity to more than 640,000 people. 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 raised a USD 25mln Series C round. ElectriFI participation is a part of that round, with a USD 5mln junior corporate debt. This is catalyzing the senior debt tranche (USD 15mln) to enable the company to further grow its footprint in Ghana and Côte d’Ivoire while at the same time it will pursue further international expansion into Senegal and other markets.
ElectriFI is supportive of PEG’s SHS business model as it replaces 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:
PEG Africa is a category B project given the level of risk associate with the energy service provided and the Solar Home Systems (SHS) installed in the customer’s household. The E&S impacts are considered minimal.