As the coronavirus pandemic continues to ravage the world, SunFunder the Kenya-based venture capital company offering debt financing to solar companies in emerging and frontier markets has announced it has invested over $100 million in venture debt in four solar businesses, including its portfolio startups, M-KOPA in Kenya and PEG Africa in Ghana.
‘‘The Covid-19 pandemic has changed all our lives. The companies we work with have all been impacted to an extent, as well as their customers, who have most to gain or lose from how this crisis plays out for the energy access sector. SunFunder acted fast to get ahead of these impacts and help mitigate the risks to our sector as best as possible. We have been working closely with our existing borrowers to understand how they and their customers are being impacted, and in turn how SunFunder can continue to support them and best manage any new risks to our portfolio and investors,’’ SunFunder said in a statement.
Here Is What You Need To Know
- According to SunFunder, it closed four new loans at the end of Q1, 2020 bringing the total loan sum to $100m which it invested in distributed solar in Africa and other emerging regions.
- The company said the new loans were with two existing solar home system borrowers — M-KOPA in Kenya and PEG Africa in Ghana — as well as long-term financing for the solarisation of Orange’s telecom towers in the Central African Republic by energy solutions provider CREI, which would cut CO2 emissions by 1,300 tons annually.
- It also disclosed that it sealed its first commercial & industrial (C&I) end user financing with MCI in Kenya for a solar installation and energy efficiency improvements.
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“We are still open for business and looking to support the sector further. We are doing this by working closely with all our partners, our portfolio companies and potential new investees,” the company further said.
- SunFunder has been active in the African solar business ecosystem investing in solar startups such as Zola Electric in Nigeria, PEG Africa in Ghana, Solarnow in Uganda, Astonfield in Kenya, Inspira farms in Rwanda, among others.
- The company also announced new partnerships with organisations like Sida and DFC, who, it said, has provided it with credit guarantee and political risk insurance facilities respectively, as it looks to mitigate new risks posed by the coronavirus pandemic.
“Emerging from the Covid-19 crisis will be a long process,” the company said. “We are doing all we can to make sure it doesn’t set back the longer-term challenges of solving energy access and climate change.”
New Initiatives For Solar Startups In Africa
Aware of the continuing threat posed by the pandemic to solar businesses in Africa, SunFunder also said it is working with Acumen, Persistent and responsAbility, among others, on setting up a relief fund for energy access companies, to support them through the crisis and protect local jobs.
“We will be providing more information about this soon, but any companies (or investors) that have not yet registered their interest can do so here: energyaccessrelief.org,” it said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.