The United States Agency for International Development (USAID) has allocated Baobab+ $1.5 million to grow in the Democratic Republic of the Congo (DRC), giving access to electricity to enable access to finance.
The Democratic Republic of the Congo (DRC) has a huge need for energy access, with just around 9% of the population having access to power. Many of the 11 million powerless families rely on expensive and polluting small-scale diesel generators, as well as charcoal and wood. These traditional energy sources degrade the DRC’s forests and can need long distance travel to get supplies, a burden that disproportionately falls on women and children. Solar energy is a fantastic possibility for rural people without access to power. Pay-As-You-Go (PAYG) technology lowers the cost barrier by allowing customers to make daily, weekly, or monthly payments based on their cash flow to activate their product and earn ownership.
Baobab+ has been operating in Kinshasa, Kwilu, and Kikwit, DRC, since 2021, and will shortly expand into Kwango.
In the last six years, Baobab+ has outfitted 250,000 families servicing over 1.5 million people in Côte d’Ivoire, Mali, Senegal, Madagascar, Nigeria, and the Democratic Republic of the Congo.
Due to a lack of collateral or a credit history to acquire loans, a considerable part of Sub-Saharan Africa’s population — 74 percent in the DRC and 80 percent in Senegal — lacks access to credit. To enhance access to financing in Sub-Saharan Africa, Baobab+, in collaboration with its microfinance parent company, the Baobab Group, complements its energy business by extending nano loans to customers who have a track record of successfully repaying their solar product loans. DIV also supports this nano-loan pilot in Senegal to assist in reaching the bottom of the pyramid; this offer will be made accessible in additional countries in the future.
Access to electricity is also a stepping stone for Baobab+ to enable every African home to participate in the digital revolution. Baobab+ was a pioneer in establishing a PAYG smartphone offer in Senegal, Côte d’Ivoire, Mali, and Madagascar. Baobab+, in collaboration with local start-ups, provides extra material that fulfils the demands of its clients, such as e-education, health, and small business management. Baobab+ has provided digital solutions to over 110,000 families to date.
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Following the Covid-19 pandemic catastrophe, the pan-African organisation exhibited its resilience: in 2021, Baobab+ had steady +42 percent annual business growth.
Alexandre Coster, co-founder and CEO of Baobab+:
“We sincerely thank DIV for their support. This grant was key in our development. It allowed us to expand in the DRC and get started faster. ”
A Look At What Baobab+Does
Baobab+ is a social enterprise that was established in 2015 and currently operates in six African countries. Its mission is to assist households and microentrepreneurs in achieving energy independence through the distribution of solar kits, and it has already equipped 250,000 households (with a total of 1.5 million beneficiaries), primarily in rural areas. In addition to its principal function, the subsidiary of the Baobab Group provides digital gadgets for use in educational and professional settings; more than 110,000 families (400,000 beneficiaries) have already been outfitted with these devices. These goods are made available to everyone thanks to the various financing options that are available.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh