The provider of solar power access solutions has signed a partnership with EDFI ElectriFI (Electrification Financing Initiative). The European Union (EU)-funded organisation is providing a $6 million working capital facility to Amped Innovation.
The working capital facility granted by EDFI ElectriFI (Electrification Financing Initiative) is intended to support Amped Innovation’s activities in Africa. In this revolving credit facility, USD 4 million will be provided as part of the overall EDFI ElectriFI facility, a European Union (EU) funded facility. The other part of the funding, $2 million, will come from the Nigerian country window.
The West African country is one of Amped’s main markets. The company, based in the state of California in the United States of America, distributes solar home systems, mainly to rural households, by implementing small fee solutions. Also, the company co-founded by Kurt Kuhlmann and Andi Kleissner supplies other solar-powered equipment, including refrigerators, water pumps and TVs.
“EDFI’s working capital facility will accelerate the deployment of Amped’s energy access solutions in more than 20 countries in Africa and South East Asia. With each new customer order, Amped can call on the EDFI facility to finance the purchase of inventory. This availability of liquidity is crucial. It smoothens out the cash flow just when it is needed in the manufacturing production cycle,” explains Andrea Kleissner.
The deal between the two parties is supported by Abuja, as well as the EU delegation in Nigeria. In addition to the working capital facility, the company is benefiting from the advisory and facilitation services of the EU’s GET.invest programme, which aims to support private company investments in renewable energy. EDFI ElectriFI estimates that the new partnership will enable Amped to provide access to electricity to 500,000 people mainly in Africa.
Jean Marie Takouleu