- The funding model applied an innovative multi-currency approach through a partnership with US-based currency hedging company MFX Solutions.
- SolarWorks! is the Mozambiques leading Pay-As-You-Go (PAYG) solar home system and energy services provider.
- The US 2 million debt facility will allow SolarWorks to directly impact the lives 65,000 people who would not ordinarily have access to electricity.
Earlier this week, Sunfunder, a solar energy finance house concluded a US 2 million loan transaction in Mozambique with SolarWorks!, the country’s leading Pay-As-You-Go (PAYG) solar home system and energy services provider.
The US 2 million debt facility will allow SolarWorks! to directly impact the lives 65,000 people who would not ordinarily have access to electricity. The initiative will offset at least 26 tonnes of CO2 emissions. The funding model applied an innovative multi-currency approach in partnership with US-based currency hedging company MFX Solutions.
Avi Jacobson, Senior Investment Officer for Sunfunder, who led the transaction, said that:
“Based on their performance, strong management, and impressive group of investors, we see that SolarWorks! is a company with the potential to scale up while improving the lives of tens of thousands of Mozambican families in the coming years. For SunFunder, this transaction aligns with our position as a preferred long-term finance partner for off-grid solar companies in Africa.”
Mozambique has an electrification rate of less than 30% and limited availability of debt capital to support off-grid solar solutions. SolarWorks! will use the debt facility primarily for working capital to accelerate their growth in Mozambique.
Arnoud de Vroomen, CEO and co-founder of SolarWorks!, commented:
“We are very proud to have closed this facility as we really appreciate SunFunder’s vision of aiming for long-term partnerships. The potential in our region is enormous so partners like SunFunder are of crucial importance in order to have large-scale impact on millions of people’s lives and at the same time deliver good financial returns for our finance partners.”
SolarWorks! began activity in Mozambique in 2011 and has recently expanded into Malawi. The company provides a basic solar home system comprising lights and charging ports that can power phones, radios and small appliances as well as more powerful systems that can support small businesses and middle income households with reliable power.
Author: Bryan Groenendaal
