- Business model
Contract signature date: 6 May 2019
Region: Sub Saharan Africa
Sector: Waste to Energy
Total ElectriFI financing: USD 2mln
Environmental and Social Category: B
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Brief description of the client and project
Sistema.bio manufactures, sells, installs, finances and services a range of modular biogas digesters and accessories design for smallholder farmers. Since inception in 2010 they have installed over 5600 units from hubs in LatAm, Kenya and India. Designed to serve farms from 2 to 200 cows, the product range varies in size from a single 6m³ biodigester, to a number of interconnected 40m³ units. With the biogas produced, an average household of 5 can do all its cooking with the smallest unit. Besides cooking, the larger systems can also be used for water or space heating and mechanical/electrical appliances such as a chaff cutter, water pump or milking machine.
ElectriFI will invest 2 mUSd in equity alongside Engie RDE, DILA Capital (and potentially others). The equity round will enable the company to continue its scale up and international expansion principally in Kenya and India. Debt in this round will be provided by Lendahand, Triodos Bank and Alphamundi.
Why ElectriFi wants to fund this project
ElectriFI supports this company because of the high E&S impact of biodigesters, through replacing solid fuel by clean renewable energy cooking, as well as waste management, production of biofertilizer and a number of health benefits. Also the company has proven best-in-class technology, and a very complete service offering including financing and thorough after-sales and quality management.
Environmental and social rationale: Which IFC PSs are triggered and the rationale behind it
The Project is rated category B.
Activities come with minimal environmental and social risks and potential negative impacts.