Investment name: Simusolar Inc.
Publication date: 16 Dec 2020
Total ElectriFI Financing: 1.5 m EUR
Region: East Africa
Sector: Productive use
Environmental and Social Category: C
(A) high risk, (B+) medium high risk, (B) medium risk or (C) low risk
Simusolar is a company established in Tanzania focused on creating solar-powered equipment that has a direct impact on productivity. The company today provides and finances accessible, affordable and energy-efficient solar-powered water pumps and fishing lights, meeting the needs of rural smallholders and fishermen.
ElectriFI contemplates an investment of USD 1.5 m in Simusolar Inc. alongside other financiers, enabling the company to strengthen its operations in Tanzania and Uganda, reaching out to a total of ~27,000 beneficiaries. The objective of this investment opportunity is to create long-term impact via productive use equipment that directly increases income of smallholder farmers and fishermen.
Why ElectriFI wants to fund this project:
ElectriFI is supportive of Simusolar business model as it effectively enables smallholders to increase their irrigation capacity and harvesting and generate more output. Solar-powered equipment are substitutes of costly and polluting diesel generators or petrol-powered equipment.
Environmental and Social Rationale:
The E&S risk category of the transaction has been classified C. The environmental and social risks and impacts associated with this project are limited, site-specific and can be readily addressed through generally accepted mitigation measures. The main E&S risks are associated with labour as well as working conditions of employees and contract workers and with e-waste. IFC Performance Standards 1 to 3 can be triggered.