The US-based Development Finance Corporation (DFC) is investing $10 million in Nithio. The platform will reinvest the funds in companies that produce and distribute off-grid solar energy in three African countries.
The U.S. Development Finance Corporation (DFC) is expanding its impact investments in Africa. The financial institution announces a $10 million investment in Nithio FI, B.V. This platform finances stand-alone solar energy systems using an artificial intelligence-based risk analysis system.
The DFC funding is committed as part of a $23 million fundraising round that also includes FSD Africa Investments (FSDAi), the investment arm of FSD Africa, and EDFI ElectriFI (Electrification Financing Initiative), a European Union (EU) funded body. Nithio will then provide loans to solar energy market players in Nigeria, Kenya and Uganda.
“Nithio has created an innovative, data-driven solution that fills a major market gap to sustainably increase capital flows to the clean energy sector. By normalising credit risk, Nithio’s investments will have a significant impact on universal energy access and combating the effects of climate change,” says Bobby Pittman, Nithio’s co-founder.
The platform has already invested in two African countries. In Kenya, Nithio has invested in Rafode. Using artificial intelligence, this microfinance company offers products for rural areas, including loans for the purchase of solar home systems. In Nigeria, Nithio invested in Winock Solar, A4&T Power Solutions, and VEP. With the fundraising, the platform aims to increase its portfolio by investing in solar energy providers for homes, businesses and agricultural activities.
Jean Marie Takouleu