AFRICA – In a partnership between Energise Africa and Solarise Africa, crowdfunders in the UK have raised over £1 million (US$1.36m) in just days to fund eight large-scale solar energy projects in sub-Saharan Africa.
The funds will enable the company to install and lease approximately 1.35MWp of solar panels and 156kWp of batteries to eight commercial and industrial (C&I) customers in Sub-Saharan Africa. Additional debt raises will follow in the new year.
“In our second funding round, we raised £550,000 (US$747,485) practically overnight, something that would have taken weeks, if not months, if we followed traditional avenues.”
“Access to working capital finance in the region is hindered by high collateralisation and interest rates,” he continued.
“Energy Africa’s innovative model offers an attractive alternative to traditional financing models, which benefits investors as well as lenders. With a targeted 6.75% interest on debt raised so far, our partnership with Energise Africa has provided crowdfunders with a potentially attractive investment opportunity.”
Energise Africa, founded by leading crowdfunding platforms Ethex and Lendahand in 2017, is a UK impact investing platform with a vision to put life-changing clean electricity with the reach of millions of people in sub-Saharan Africa and beyond through people-powered finance.
“The increase in social and climate awareness in the UK this year has led to investors seeking projects that support a bigger purpose rather than just looking for financial gains,” said Lisa Ashford, CEO of Energise Africa.
“We’re proud that the investment opportunities offered through our platform, like these recent raises for Solarise Africa allows individuals to invest to create a positive impact while targeting a financial return. We look forward to working with Solarise to offer investors more opportunities in 2022.”
In September last year Swedish-based impact investment platform Trine collaborated with Solarise Africa, a pan-African energy leasing company, to invest in renewable projects on the continent.
The first debt financing round provided by Trine will finance five solar projects in South Africa and Kenya.
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