IFC, a member of the World Bank Group, and FMO, the Dutch development bank, have invested in Mobisol to deliver renewable energy solutions to off-grid communities in East Africa.
IFC’s equity investment of EUR 5.42 million (US $5.7 million) and EUR 9.2 million (US $9.7 million) – all totalling US $15.4 million – from the AEF and MASSIF Dutch government funds managed by FMO brings them into partnership with Investec Asset Management’s African Private Equity Fund and DEG, which have already invested in Mobisol. The financing will help accelerate Mobisol’s growth in existing markets in Rwanda and Tanzania, and to support its expansion into Kenya.
“Our partnership with IFC and FMO, alongside Investec Asset Management marks an important milestone in the growth history of Mobisol. We are excited by the value such a reputable list of global investors stand to bring to Mobisol. We can now concentrate on scaling and even better serving our customers,” said Thomas Gottschalk, Founder and CEO of Mobisol.
Mobisol has already installed over 67,000 solar home systems in Rwanda and Tanzania, giving access to electricity and the use of efficient appliances to over 330,000 consumers. The system is paid off by customers over three years via mobile money. This innovative payment approach keeps the cost of an entry-level Mobisol system similar to what the typical customer spends on kerosene, candles, batteries, and mobile phone charging while offering superior value.
“IFC’s investment in Mobisol reflects our commitment to bridging the infrastructure gap and to mitigating climate change by delivering reliable, clean and affordable alternatives to fossil fuels for lower income households in Sub-Saharan Africa,” said Oumar Seydi, IFC Director for East and Southern Africa. “Our partnership with Investec Asset Management, FMO and DEG will help deliver the Mobisol solar home systems to other parts of Africa.”