Azuri Technologies, a leading provider of pay-go solar products and services across sub-Saharan Africa, has launched Sh2 billion ($20 million) off-balance-sheet debt financing program to provide working capital for the expansion of off-grid energy and service provision in East Africa.
Announcing the deal at the Global Off-Grid Lighting Association conference in Hong Kong, CEO Simon Bransfield-Garth said the program will be deployed in phases in the course of 2018.
The first phase of Sh400million ($4 million) to be deployed in Kenya, has already been concluded and will provide additional financing to enable Azuri supply its PayGo solar systems, including satellite-TV solution, and future product solutions.
“Completing the first phase of our receivables financing program is a major step for Azuri. The support of ElectriFI is a great vote of confidence in the opportunity in the African off-grid home solar sector as a whole, and in Azuri in particular. It will enable us to attract a new set of commercial investors to expand the impact of our work,” said Azuri’s CEO, Simon Bransfield-Garth.
Subsequent phases of the program will expand to Azuri’s other key territories in East Africa including Tanzania, Uganda, and Zambia. The Azuri financing program allows commercial debt to be raised and secured against the future revenues of Azuri customers.
According to Bransfield-Garth, this has been made possible by the strong track record of customer repayments for Azuri’s PayGo products and provides confidence to debt investors who are able to use Azuri’s detailed customer data to ensure the finance is duly deployed to intended customers and that customer receipts are appropriately secured.