Africa’s energy access gap is no secret hence the need for promotion of sustainable developmenta role that d.light aspires to assume. d.light, a global leader in affordable household solar solutions, has announced the successful securing of a $30 million securitization facility from the Eastern and Southern African Trade and Development Bank Group (TDB Group). The facility, which has the potential to purchase up to $125 million of receivable assets, is set to amplify d.light’s efforts to provide affordable solar-powered products to low-income households across Tanzania.
Since its inception in 2008, d.light has been at the forefront of innovation, consistently striving to improve access to reliable and clean energy for underserved communities. The new financing from TDB will bolster d.light’s existing securitized financing facility in Tanzania and help expand their low-cost Pay-Go personal finance service, enabling more individuals and households to access the company’s transformative solar solutions.
The CEO of d.light, Nick Imudia, expressed his enthusiasm about the funding, stating, “This new financing from TDB gives us the extra funding to reach more low-income families and households in Tanzania via our Pay-Go business, in a way that is affordable for our customers and sustainable for our business.”
With this latest funding, d.light’s total securitized financing since 2020 reaches an impressive $490 million. The financing facility in Tanzania is set to be anchored by TDB, a testament to the bank’s commitment to driving sustainable energy solutions in the region.
Michael Awori, CEO of TDB, emphasized the crucial role energy access plays in sustainable development, particularly for off-grid communities. He applauded d.light’s efforts to positively impact communities, stating, “As one of the leading renewable energy financiers in the region, we are delighted to extend this second facility to d.light, this time in Tanzania.”
Tanzania, the fifth most populous country in Africa, grapples with electricity access issues, as only 40 percent of its population currently enjoys this privilege. d.light’s long-standing presence in the country, dating back to 2008, has contributed significantly to bridging this gap and improving lives through reliable solar-powered solutions.
Imudia added, “As a scalable method of financing, securitization is an important fiscal tool to help African countries achieve the United Nations’ Sustainable Development Goals for energy access. Expect further expansion of this facility by d.light into other major sub-Saharan African markets during 2023.”
The financing model employed by d.light leverages payments from existing and future customers utilizing the Pay-Go service, redirecting these funds to expand the company’s operations and increase market penetration.
Eric De Moudt, CEO of African Frontier Capital (AFC), d.light’s lending partner, highlighted the collaborative efforts behind this achievement, saying, “These social impact securitizations are helping d.light to bring financial inclusion and access to reliable and clean energy to millions of people while simultaneously helping to ensure a just and equitable energy transition that benefits everyone.”
In April, d.light marked a significant milestone, impacting the lives of over 150 million people worldwide with their range of dependable and affordable solar-powered household products. The new financing has laid the foundation for a novel financing vehicle named Brighter Life Tanzania 1 Limited (BLT1), created by d.light and AFC.
Tanzania’s journey towards energy access is well underway, with d.light’s commitment to delivering positive change to its people. With a blend of innovation, strategic financing, and dedication to sustainability, d.light continues to illuminate the path towards a brighter future for communities in need.
