Ghana-headquartered pay-as-you-go (PAYG) solar company PEG Africa has raised a US$5 million debt funding round from ElectriFI to continue its growth in its existing West African markets.
PEG Africa uses a PAYG financing model to provide credit for solar home systems to underserved households in Ghana, Ivory Coast and Senegal, and serves over 60,000 households with 400,000 daily users.
The company raised a US$25 million Series C round from existing and new investors towards the end of last year, taking its total raised funding to date to US$50 million, and has now added to that with US$5 million from ElectriFI, the Electrification Financing Initiative, which is funded by the European Union and managed by the EDFI Management Company, established by 15 European development finance Institutions.
The funding comes in the form of subordinated junior debt and will be used for growth in PEG’s existing markets, where chief executive officer (CEO) Hugh Whalan said it had been almost doubling in size every year since 2015.
“The fact we are now able to raise a significant amount of our funding in debt demonstrates that our approach is financially sustainable. We are delighted to work with ElectriFI to further accelerate our growth,” he said.
Dominiek Deconinck, ElectriFI fund manager, said the initiative was thrilled to support PEG Africa on its growth path.
“With 82.000 direct new connections by the end of 2019, together adding not less than 1.7 MW with solar home systems, ElectriFI’s investment in PEG will strongly contribute to improving quality of life through renewable energy in the markets it operates in,” he said.