Solar solutions provider Bboxx has secured a $4 million loan from the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI OGEF), a debt fund managed by Lionโs Head Global Partners (LHGP) to accelerate energy access in the Democratic Republic of Congo (DRC).
The loan will enable the company to accelerate operations in the across Kivu, Ituri and Tshopo provinces with ambitions to expand further in the country. Currently, only around 19% of the DRC population has access to electricity, and for those that do have access, electricity is often unreliable.
The DRC is already a core market for Bboxx, now this new funding will provide the opportunity to further increase the companyโs impact in this central African country.
Earlier this year, Bboxx announced a memorandum of understanding (MoU) with the DRC government, with the aim of bringing clean energy to 10 million citizens, equivalent to 10% of the population.
This debt financing from FEI OGEF builds on the Fundโs $8 million loan made in May 2019 to turbocharge Bboxxโs energy access plans in Rwanda.
FEI OGEF is a $100 million blended finance debt fund that provides predominantly secured financing to support the growth of innovative companies in the off-grid energy sector, and it is part of the African Development Bank (AFDB) flagship initiative, Facility for Energy Inclusion.
This deal comes at a time of significant growth for Bboxx, as this year it celebrates its 10th year in business and reached a milestone of transforming over one million lives through access to energy.
Mansoor Hamayun, CEO and co-founder of Bboxx, commented: โBuilding on our productive relationship with FEI OGEF and Lionโs Head Global Partners highlights investor confidence in our business model. It is a positive step in the right direction in securing more funds to help tackle the global energy access gap and make progress towards meeting UN Sustainable Development Goal 7 โ energy for all.
โWe have substantial operations and a proven track record in the DRC, having signed an important MoU with the DRC government at the beginning of the year. As we embark on the next phase of our ambitious growth journey, we look forward to putting these funds to good use by helping to transform even more lives and unlock potential through access to clean energy.โ
Harry Guinness, managing director at Lionโs Head and OGEF Fund Manager, added: โThe OGEF team remains impressed with Bboxxโs mission, technology and scale โ and we are excited to expand our role in their growth in challenging markets by boosting operations in the DRC. This transaction was a real team effort โ owing thanks to partners at the World Bank and local funders โ and the collaboration and effort underscores OGEFโs commitment to increase debt financing in Africa.
โWe look forward to continuing to contribute to Bboxxโs substantial achievements in expanding access to clean energy through much-needed scalable capital. This transaction sets another standard and weโre driven to adapt, learn and replicate it with borrowers in the sector across Africa.
Author: Babalwa Bungane
Babalwa Bungane is a content creator/editor for ESI Africa – Clarion Events Africa. Babalwa has been writing for the publication for five years. She has a great interest in social media due to its advantage of disseminating content.
This article was originally published on ESI Africa and is republished with permission with minor editorial changes.