News - Afrikan Heroes

Ghana leads on industrial growth by dropping the dogma

October 13, 2020

By Maudo Jallow

Ghana has shown that by dropping the dogma around free market policy, making manufacturing a bipartisan cause and using the government as a problem-solving machine for business, African countries can create jobs and attract investment into industry.

The Africa Continental Free Trade (CFTA) agreement now serves as the cornerstone of efforts to transform Africa’s economy. Its ultimate overarching goal is not merely to boost intra-African trade, but to industrialise the continent.

Yet the CFTA will face major headwinds in these early years unless African economies demonstrate tangible progress in their industrialisation efforts.

Among others, Ghana’s industrial strategy provides an example of how governments can drive industrialisation in a way that aligns to increased trade, thereby supporting the CFTA and its aims.

In 2018, Ghana became West Africa’s largest recipient of foreign direct investment (FDI) in West Africa, attracting $3bn and raising its FDI inward stock to $36bn in 2018, up from just $10bn in 2010. Manufacturing is a major component – between 2015 and 2018, $3.8 billion out of a total $11.7 billion in FDI was in this sector and this trend continued in 2019 and 2020.

How and why has Ghana succeeded in this way? A plethora of research has attempted to answer this question.

However, most have been inconclusive and largely ignored the depth of the role of the state, typically framing it around merely providing a stable macroeconomic environment.

Yet, the government played a much more active and strategic role, intentionally promoting, facilitating and incentivising investment in specific sub-sectors of manufacturing through a pro-active and emerging industrial policy.

While this approach has not been without its challenges, there are five clear themes which have driven Ghana’s industrialisation efforts.

Clear Vision

First, Ghana has a clear industrialisation vision. The government – at the highest levels – wants to turn Ghana into a manufacturing hub for West Africa and the Ghana Industrial Policy of 2010 has served as a ‘north star’ for this.

It identified key challenges and bottlenecks, while also setting guidelines for the competitiveness and diversification of Ghana’s manufacturing sector. The two parallel approaches embedded in the policy are an export-led industrialization strategy and domestic market-led industrialization strategy based on import competition.

Role of Leadership

The Ghana Investment Promotion Centre (GIPC), which sits under the Office of the President, has played an important role since the GIPC Act was passed in 2013.

Much of the credit for securing investment in Ghana’s manufacturing sector lies with the GIPC Act which enabled the government to provide a set of incentives and subsidies for companies looking to manufacture for export, as well as the policy allowing duty-free import of technology and machinery for manufacturing.

Political Will and Bipartisanship

Industrialisation has become a bipartisan issue in Ghana, with both of the major political parties recognising its electoral popularity and its importance for the country’s economic transformation, irrespective of their political ideology.

Under both of the major political parties over the last decade, transformative investments were made in infrastructure, an industrial policy was developed and there was a push to use revenue from the relatively new oil sector to finance an ambitious economic diversification programme.

Removal of Key Barriers

The government used its industrial strategy as a co-ordinating tool to eliminate specific obstacles, such as trade barriers, industrial land availability, and tailored infrastructure, and accentuate the country’s strengths – the rule of law, a highly educated workforce and availability of key resources.

Recently, the government has prioritised ensuring reliable and cheap power, financial stability and land for investors.

It has also developed special economic zones such as the Tema Export Processing Zone, which has been remarkably successful and has played a central part in the growth of Ghana’s industrial sector over the past decade, with the attraction of companies such as Barry Callebaut, Cargill and Cocoa Touton to the country a direct result of the efforts of the Ghana Free Zones Board.

Collaboration for Market Creation

Industrial policy is nothing without implementation and collaboration. The Government has deliberately focused on working with investors to create markets, supporting local industries and to creating a suitable environment for foreign investment and technology transfer.

A vivid illustration of this is the Ministry of Industry and Trade and other government stakeholders’ work over the last year to develop a policy to kickstart a local automotive assembly and manufacturing industry in Ghana.

Ghana can serve as a useful benchmark for other African countries seeking to industrialise and diversify their economies, and thereby increase their ability to engage in and be supportive of the CFTA. Were other countries to adopt a similar approach to develop job-creating sectors like agro-processing, manufacturing and tradable services, in a market-led and pro-trade spirit, then the CFTA and its underlying vision could become a reality over the next two or three decades

Jallow is an Associate at the Tony Blair Institute for Global Change

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Nigeria, South Africa lead in annual illicit capital flight in Africa

October 12, 2020

Nigeria, Egypt, and South Africa account for more than four-fifths of the total illegal capital outflows from Africa annually with Abuja alone making up nearly half of that, a recent report by the United Nations Conference on Trade and Development has said. Collectively, Africa loses an estimated $88.6 billion in illicit financial flows – that is equivalent to 3.7 percent of the continent’s gross domestic product.

The total illicit capital flight has surpassed what the continent receives in developing aid annually, and almost as much as the combined total annual inflows of official development assistance ($48 billion) and yearly foreign direct investment pegged at $54 billion, per 2013 to 2015 average.

These outflows generally include illicit capital flight, tax and commercial practices like mis-invoicing of trade shipments, and criminal activities such as illegal markets, corruption, or theft. IFFs related to the export of minerals and extractive commodities are the largest component of illicit capital flight from Africa – $40 billion in 2015 – with more than three-fourths of it being from gold, diamonds, and platinum.

“Scarcity of available geological information in Africa and the resulting information asymmetry between mining companies that have the means to acquire private information about reserves and governments makes the extractive sector prone to illicit outflows,” the report notes.

Loopholes in many tax treaties in Africa, secrecy-based tax havens, and non-cooperative jurisdictions are also major enablers of illicit financial flows, leaving countries vulnerable to tax avoidance and evasion. Tax havens are particularly attractive to high-net-worth individuals and cause an estimated loss that amounts to 2.5 percent of total tax revenue in Africa.

Cumulatively, the total IFFs reached $836 billion in the first 15 years of this century, representing a major drain on capital and revenues in Africa while derailing productive capacity and the region’s prospects for achieving the Sustainable Development Goals. “Illicit financial flows rob Africa and its people of their prospects, undermining transparency and accountability and eroding trust in African institutions,” UNCTAD Secretary-General Mukhisa Kituyi said.

The report highlights the importance of collecting more and better trade data to detect risks related to IFFs, increase transparency in extractive industries, and tax collection. On the latter, African countries need to enter the automatic exchange of tax information agreements to effectively tackle capital flight, the UN agency said.

Transparency and cooperation between tax administrations globally and within the continent are key to the fight against tax evasion and avoidance. Regarding regional cooperation on taxation within the continent, the report notes that the African Tax Administration Forum can provide a platform for regional cooperation among African countries.

Regional knowledge networks to enhance national capacities to tackle the proceeds of money laundering and recover stolen assets, including within the context of the African Continental Free Trade Area, are crucial in the fight against corruption and crime-related IFFs, the report adds.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

DStv Launches ‘Add Movies’

DStv has launched ‘Add movies’ – a new movie offering that allows Compact Plus, Compact, Family and Access customers to sign up for DStv’s dedicated movie channels previously only available to Premium subscribers. This offering is available on M-Net Movies 1, M-Net Movies 2 and fliekNet for an additional R99 per month for South African subscribers.

The entertainment company says that Add Movies “gives subscribers more choice and control to structure their entertainment needs, including the flexibility to add on this service from month-to-month”.

While Yolisa Phahle, CEO of General Entertainment & Connected Video at MultiChoice Group says that Add Movies was developed in response to customers’ appetite and interests. “It remains our priority to give customers both choice and value. Add Movies firmly delivers on both scores, with a wide variety of quality movie content at a compelling price.”

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DStv has reported an increase in audience figures during the lockdown period and the availability of both international and local content is a major deciding factor in users viewing habits. During this period, subscribers spent an average of five hours a day watching television and M-Net was one of the most popular channels with binging content for the entire family.

Subscribers will have access to a variety of movies from the following channels:

M-Net Movies 1 (DStv Channel 104) delivers family-friendly animation, comedy, romance and award-winning drama.

M-Net Movies 2 (DStv Channel 106) delivers the latest adrenaline-packed action, sci-fi, fantasy and thrillers.

fliekNET (DStv Channel 149), showcasing locally produced blockbuster movies, classic favourites and a variety of Afrikaans film formats.

Add Movies is available for existing subscribers to add to their packages, or on sign-up for new subscribers in South Africa.

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

South Africa experiencing high adoption of digital payments

October 11, 2020

The accelerating rate at which retail merchants are enabling consumers to pay digitally at point of sale is said to be fueling the growth of digital payments in South Africa. This is according to FNB, which revealed that its Scan-to-Pay and Tap-to-Pay functionality on the FNB APP recorded the highest month-on-month usage growth in August 2020 since launch. The Bank states that month-on-month transaction volumes on Scan-to-Pay – which allows users to scan a QR Code to make secure payments at a physical point of sale or on an online merchant website – grew by 36% in August while values increased by 39%. Similarly, month-on-month usage of Tap-to-Pay functionality – which allows users to pay for goods by simply tapping their smartphone to pay at a point of sale – increased by 48% with values growing by 54%.

Chief Executive of FNB Retail and Private Banking, Raj Makanjee

The insights are consistent with the 28% increase in FNB APP usage volumes that was reported for the previous financial year. This is also in line with customer behaviour shifting towards contactless in general, as customers realise the convenience and security benefits with contactless card transactions at Point of Sale (POS) growing month-on-month at 16.4%. Chief Executive of FNB Retail and Private Banking, Raj Makanjee says, “Digital payments have received a significant boost over the course of the COVID-19 pandemic as more consumers and retailers are embracing the need for safety and efficiency. Digital payment methods are equally important for consumers because people can be less reliant on cash and cards by choosing to pay using their cellphone. In our case, this affords our customers the added safety of using a trusted and secure platform of our FNB APP.”

According to the bank, consumers will soon be able to take their digital payment journey one step further by using Virtual Cards. In the coming months, Android App customers with a compatible Android device will also be able to add their Virtual Card for Tap-to Pay on the App for contactless payments convenience.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Hackers attack Airtel, MTN and Stanbic Bank in Uganda

Hackers have been on the prowl in Uganda with key business entities falling victim to their attacks. Chief among them is mobile money transaction company, Pegasus technologies that suffered a major data breach resulting in the loss of billions of Ugandan Shillings. The breach is said to have impacted telcos, Airtel and MTN Uganda, as well as Stanbic Bank, Uganda’s largest bank.

“Stanbic Bank Uganda, MTN Uganda and Airtel Uganda inform the public and their customers that on Saturday 3 October 2020, a third-party service provider experienced a system incident which impacted Bank to Mobile Money transactions. All Bank to Mobile Money/Wallet services have since been temporarily suspended,” reads an official statement from the companies. “This system incident has had no impact on any balances on both Bank and Mobile Money accounts. Our technical teams are analysing the incident and will restore services as soon as possible. We apologise to all customers for any inconvenience that this has caused and reiterate our commitment to delivering seamless banking and mobile money services.”

MD of Pegasus Technologies, Ronald Azairwe said that he couldn’t deny nor confirm the incident – “Sadly I can’t comment on that. I can’t speak about it. [The affected] should be able to tell you whether it is Pegasus or not.”

“From Thursday night, the hack went on undetected until Saturday. By this time, hackers had sent themselves almost UGX1.3 billion but had managed to withdraw UGX900 million from Airtel Money. We estimate MTN also lost almost twice the same amount of money since they are mobile money leaders. When the fraud has detected all transactions going through Pegasus Technologies, were suspended.”

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

African Guarantee Fund Appoints Jules Ngankam as Group Chief Executive Officer

October 10, 2020

The African Guarantee Fund has named Jules Ngankam as its new Chief Executive Officer (CEO), the appointment follows his recent nomination as Acting Group CEO at the beginning of July 2020, when the founding CEO transitioned to Board Chairman. Ngankam’s appointment was confirmed by AGF Board of Directors on 22nd September 2020; He has worked with the pan-African financial guarantee provider for the past seven years.

Mr. Ngankam joined AGF in 2013 as the Chief Finance Officer, after which he served as Deputy CEO since April 2017. He is a Cameroonian national and a graduate of ENSAE Paris in statistics and economics and of ESSEC Business School in Paris. He also holds a Master’s degree in Applied Mathematics from the University of Paris Dauphine in France. His appointment comes at a time when lenders across the continent are in dire need of cushioning to support them as they lend to SMEs.

“I am grateful and humbled to take up this position. AGF has succeeded over the years to make a difference in our continent’s economy by unlocking financing for SMEs, and I look forward to even greater results” he said.

In a related development, the Africa Guarantee Fund (AGF) Board of Directors also approved the implementation of the Affirmative Finance Action for Women in Africa (AFAWA). AFAWA is an initiative being undertaken jointly with the African Development Bank which aims to address all critical elements of the entrepreneurship ecosystem of women in business in Africa, in particular finance, to support their economic empowerment, reduce vulnerability, and unleash unused potential for more sustainable and equitable growth.

Speaking at the Board Meeting, the new chairman, Felix Bikpo congratulated Mr. Ngankam and wished him success in his new role. He also thanked the Board of Directors for their continued support to the Group, citing AFAWA’s approval, which will be a game-changer for African women entrepreneurs.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Kenya’s PesaKit evolves into super-platform for MoMo agents across Africa

If the ambition of PesaKit, one of Kenya’s leading fintech startups goes as planned, then we will be looking at the emergence of a super-platform for African mobile money agents which will enable them to become a reliable last mile distribution channel for digital and financial services. PesaKit was established in 2018 as an app-based platform for mobile money agents, available on Android which was described as “the bank branch of the future. The PesaKit app enables mobile money agents to better serve their customers and manage their finances via existing mobile money products as well as new ones.

Andrew Mutua, PesaKit’s founder and chief executive officer (CEO)

The app also keeps track of the agents transactions and provides them with insights into their business flows and trends so that they can better manage their liquidity. The app has already empowered 2,500 agents to make smart decisions on their day-to-day operations, resulting in a 20 per cent increase in profits and productivity.

“We have 14 telco and digital products partners on the platform whose services are available for agents to distribute. Within a month of launching our new app we onboarded more than 1,000 agents, and they are actively transacting on the PesaKit platform,” Andrew Mutua, the startup’s founder and chief executive officer (CEO) said.

The startup, which is participating in the Catalyst Fund global inclusive fintech accelerator, was founded to address the supply-side challenges of mobile money and the agency banking model in Africa. Mutua said it wants to empower mobile money agents to serve more customers.

“We focus our efforts in improving the financial health of mobile money agents as well as bolstering their resilience. This in turn improves access for our end customers. The long-term goal of PesaKit is to ensure the financial stability of the underserved populations across the continent through financial and digital inclusion,” he said.

The app does this by easing an agent’s daily liquidity and operations pressures by offering float loans and business insights, as well as consolidating the distribution model by providing last-mile distribution of financial services on behalf of banks, cooperatives, microfinance institutions, mobile network operators, and remittance and insurance companies. “Globally, agents are the backbone of the mobile money industry. Yet they face inherent liquidity and financial management challenges,” Mutua said.

“Agents already serve as a distribution channel for mobile money services, but we believe that – if equipped with tools and know how – they could become a channel for many other services, thereby extending access as well as expanding and diversifying revenue streams.”

After strong initial uptake in Kenya, PesaKit is already opening its doors in Tanzania, where it will launch later this year. The bootstrapped startup, which thus far has only taken in prize and grant money, is in the process of raising a seed round to support this expansion effort. “We have just set up in Tanzania and are preparing for our launch. Our future plans involve an expansion through the COMESA region,” said Mutua.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Lake Chad region: The key to peace is water, not military action – Saheed Babajide Owonikoko

October 9, 2020

Saheed Babajide Owonikoko is Researcher, Centre for Peace and Security Studies, Modibbo Adama University of Technology

Lake Chad is an extremely shallow water body in the Sahel. It was once the world’s sixth largest inland water body with an open water area of 25,000 km2 in the 1960s, it shrunk dramatically at the beginning of the 1970s and reduced to less than 2,000 km2 during the 1980s, decreasing by more than 90% its area. It is one of the largest lakes in Africa. It is an endorheic lake – meaning that it doesn’t drain towards the ocean.

Its origin is unknown but it is believed to be a remnant of a former inland sea. It doesn’t drain into the ocean but it has shrunk by over 90% since the 1960s due to climate change, an increase in the population and unplanned irrigation. Given the rate at which the lake is disappearing, in less than a decade it may cease to be.

Four countries share borders within the water body – Nigeria, Chad, Niger and Cameroon – and have formed a political union, the Lake Chad Basin Countries. Other countries indirectly connected to the lake are Algeria, Libya, Central African Republic and Sudan. Over 30 million people live around the lake. For them, it’s a source of freshwater for drinking, sanitation and irrigation. It supports the livelihoods of farmers, pastoralists, hunters and fishermen.

The Lake Chad region, however, is one of the most unstable in the world. According to the 2020 Global Terrorism Index report, countries of the region are among the 10 least peaceful countries in Africa. Our research focused on how the drying of this important water body contributes to the instability in the region.

We collected data from interviews with respondents from Lac Region in Chad, Far North Region in Cameroon, Diffa Region in Niger Republic and the North East geopolitical zone in Nigeria. These regions of the Lake Chad Basin Commission countries compose the Chad Basin Region. We also collected data from news reports.

The study found that loss of livelihoods has promoted criminality, easy recruitment by terrorist groups, and migration to urban centres. This has also led to violence and crime in cities and towns. Management of the shrinking lake has caused conflicts among the states that depend on it and this has made it more difficult for them to collectively fight insecurity in the region.

The lake is central to regional stability. To achieve peace, countries should focus on reviving the water body rather than on military activities.

Impact on livelihoods

The immediate impact of the drying of Lake Chad is loss of livelihoods. One of the respondents said in an interview that: “Many years back, this water used to be what we depend on for farming, fishing and herding. Since the water has dried up, sustaining our livelihoods has become so hard. We can hardly farm now and we record regular death of our livestock because of lack of fodder and water to fatten them. Because of this, most people have abandoned farming, fishing and livestock rearing because they are no longer sustainable in this area.”

Loss of the traditional means of livelihood leads to widespread poverty and food insecurity. A 2017 report estimated there were about 10.7 million inhabitants of Lake Chad Region in need of humanitarian services.

Impact on regional stability

The shrinking of the lake contributes to regional instability in four ways. First, some of the region’s people have taken to criminal activities for survival. One of the major criminal activities in the area is cattle rustling.

Reports have pointed to rising incidence of cattle rustling in the region. It’s easy to move cattle over the country borders in the area to evade arrest. Contemporary rustling has been associated with Boko Haram who resort to cattle rustling as additional means of raising fund in support of their operations. Boko Haram has become a serious security problem in the Lake Chad region.

Most of the response to the threat of the group has been military. For example, from 2009 to 2018, Nigeria’s defence budget totalled nearly $21bn with a substantial part going towards the fight against Boko Haram. Further, Boko Haram has capitalised on the loss of livelihoods and economic woes to recruit people into its ranks. It either appeals to the poor ideologically or directly uses economic incentives.

Interviews with respondents also revealed that the drying out of the lake has intensified long-distance migration of people and livestock to cities and towns of the basin’s countries. The result has been competition for resources, especially farmer-pastoralist conflict. Between 2016 and 2019, almost 4,000 people died in Nigeria as a result of farmer-pastoralist conflicts.

As the lake has shrunk, the water has shifted towards Chad and Cameroon while the Nigerian and Nigerien sides have dried up. This forces people to cross national borders to reach the shoreline. Respect for boundaries disappears.

A complex web of social, economic, environmental, and political issues spills into interstate conflicts. This conflict relationship caused by access to and management of the lake has seriously affected the collective effort of the region’s states to fight Boko Haram.

Way ahead

The Lake Chad Basin Commission has identified the need to replenish the water body. There was a plan to build a dam and canals to pump water from the Congo River to the Chari River, Central African Republic and then on to Lake Chad. It was first mooted in 1982 by the Italian engineering company Bonifica Spa, and discussed at the International Conference on Lake Chad in Abuja in 2018. Major challenges to this plan include funding, resistance from environmental campaigners and peaceful conditions in which to carry it out.

Unfortunately, this scheme is yet to see the light of the day. The commission’s member states lack the commitment required to take action, probably due to the conflict relationship between the other Lake Chad countries and Nigeria. Yet if they want stability in the region, the key is to replenish the lake.

By Saheed Babajide Owonikoko is Researcher, Centre for Peace and Security Studies, Modibbo Adama University of Technology

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Nigeria’s startup ImaliPay launches new financial products

ImaliPay Chief Operating Officer and Co-founder, Oluwasanmi Akinmusire

A startup ImaliPay has launched its platform, which leverages artificial intelligence (AI) and big data to offer tailored financial products that promote the inclusion of gig economy platforms and workers across Africa. Co-founded early this year by Tatenda Furusa and Sanmi Akinmusire, ImaliPay offers both new and existing gig workers and freelancers the ability to seamlessly save their income and receive in-kind loans through a buy now, pay later model tied to their trade.

As gig workers save money or repay loans on time, they are able to build a credit history that will in turn unlock more formal financial services in the future.

“Gig workers or freelancers are daily or weekly earners. Due to this volatility, and fragmented earnings or income, they often lack a safety net and lack tailored access to financial services. This means they are underserved or neglected by existing financial institutions. For new gig workers entering the new economy, they struggle to have a “leg up” to get into gig work,” Furusa said.

ImaliPay helps with this, and launched in partnership with e-hailing startup SafeBoda in Nigeria this year. Since then, Furusa said it has seen 30 per cent month-on-month customer growth, with 96 per cent of its registered riders saving, borrowing, or both.

“This includes saving daily and weekly, and accessing product financing for phones, bike parts and fuel from our platform, which significantly improves productivity and earns more income over time,” he said.

Expansion is an immediate goal. ImaliPay will soon launch in Kenya in partnership with services platform Lynk, and by the end of the year will also be active in South Africa, working with another large freelancer platform. It also plans to launch in Uganda and Ghana in the first quarter of 2021.

ImaliPay, which makes money through service charges, low interest rates and withdrawal fees, was briefly concerned by the affect of COVID-19 on certain parts of the gig economy.

“However, ride-hailing and on-demand mobility have proved to be essential services for delivery of crucial consumer goods and commodities to households across Africa. Furthermore, the future of work post-COVID will involve significant remote work including outsourced jobs to online white collar freelancers,” said Furusa.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Easy Solar raises $5m Series A round to scale operations

October 8, 2020

Alexandre Tourre, chief executive officer (CEO) of Easy Solar

Efforts to launch operations in the Mano River Union region of Sierra Leone and Liberia by Easy Solar has received a boost with a US$5 million Series A debt and equity funding round which will go directly into the expansion projects.

Founded in 2016, Easy Solar is an innovative distribution company making energy and financial services affordable and accessible for those with limited access to power in Sierra Leone and Liberia.

The company has so far provided energy services to more than 450,000 people, and created over 600 clean energy jobs, with a far-reaching distribution network going all the way to the last mile. It offers a wide range of energy solutions from small solar lanterns for lighting and mobile charging, to pico solar home systems with appliances like TVs and fans, all the way up to kW sized systems designed for residential, commercial, and industrial users.

Easy Solar now plans to further scale its activities in the region after raising a US$5 million Series A round, which includes US$3 million in equity from global impact investor Acumen and FMO, the Dutch entrepreneurial development bank, and a US$2 million debt facility from investment platform TRINE.

The funding will enable Easy Solar to scale its reach in Sierra Leone and Liberia, where the vast majority of the population are off-grid, while simultaneously expanding its portfolio of products for existing customers.

“While further expansion in West Africa is on the horizon with this funding, we remain committed to our vision of going deep into the markets we operate in. We will continue to improve the reach of our brand and distribution network in Liberia and Sierra Leone – where we operate the country’s largest direct retail network – and leverage it to offer additional products and services to our customers, directly or through strategic partnerships,” said Alexandre Tourre, chief executive officer (CEO) of Easy Solar.

“We’re also very excited to have brought such experienced and committed investors to the table as we continue with the scaling up of our C&I activities to answer the growing energy needs of offices, farms, factories, schools and hospitals across West Africa, with the same commitment to quality, ease of use and affordability.”

Marieke Roestenberg, FMO venture programme manager, said off-grid energy companies play a critical role in delivering clean, affordable, reliable energy without the need for grid infrastructure.

“Sierra Leone’s low electrification rates combined with limited alternatives for clean energy make Easy Solar’s business model highly relevant. The company has a strong and dedicated founding team, which has managed to grow the company substantially during the past years. FMO’s funding allows the company to continue this expansion, both inside and outside Sierra Leone,” Roestenberg said.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry