PEG Africa, a company specialising in the distribution of solar solutions in West Africa, has recently secured $5 million in financing. The money was made available to them by ElectriFI, an initiative of the European Union that supports the development of electricity.
PEG Africa, one of the leading suppliers of solar kits in West Africa, already has $55 million in funding. The company recently obtained $5 million in financing from the European Union through ElectriFI. The total investment of this loan is $55 million. The money made available in the form of a loan will enable the company to support its expansion into the African market. For PEG Africa, this new debt is further proof of the validity of its financial model. Hugh Whalan, CEO of the company, asserts: “The fact that we are now able to mobilise our debt financing demonstrates that our approach is financially viable.
The kits offered by PEG Africa consist of LED bulbs and plugs for charging mobile phones. Billing and payment for these services are done through the pay-as-you-go system, which allows customers to pay according to what they consume. In April 2019, the company raised $25 million from several investors to increase its supply of solar kits. Since its creation in 2015, PEG Africa has already distributed solar kits to 400,000 people in 60,000 households. The company is present in West Africa, notably in Ivory Coast, Senegal and Ghana. Its product allows people to get rid of polluting fuels such as diesel and kerosene and turn to solar energy.
The company plans to expand its distribution network to other African countries. It also plans to develop other services, such as solar-powered irrigation projects and the development of larger-scale solar photovoltaic systems. In addition, PEG Africa intends to establish 82,000 new connections before the end of 2019 for a cumulative capacity of 1.7 MW of domestic solar installation.
ElectriFi is an electrification initiative and a financial mechanism of the European Union. It is managed by the Association of European Development Finance Institutions.
PEG Africa has 450 full-time employees and more than 600 independent sales agents, paid on a commission basis. PEG Africa’s expansion has earned it several awards, both internally and internationally.