German firm raises US $ 15.5 million for solar home systems in East Africa

German firm raises US $ 15.5 million for solar home systems in East Africa

Mobisol GmbH a pay-as-you-go solar energy service company has raised US$15.53 million (€14.62 million)for solar home systems in East Africa.

Started in 2010, Berlin-based Mobisol has designed modular solar home systems, a clean, safe and reasonably priced alternative to fossil fuels for low-income African homes.

Made for the African market, the first-rate systems are powerful enough to meet the complete energy needs of an off-grid home, powering lighting, radios, stereos and TVs, and other home appliances such as refrigerators.

In addition to household use, many small trades are also making incremental revenue from their Mobisol systems by offering mobile phone charging services, operating barber shops or village cinemas.

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Mobisol has by now installed more than 67,000 solar home systems in Rwanda and Tanzania, providing access to electricity and the utilization of resourceful appliances to more than 330,000 customers. The system is paid off by consumers over three years through mobile money.

The incoming funds will be used to speed up Mobisol’s growth in existing markets in Rwanda and Tanzania, and to sustain its extension into Kenya.

IFC’s investment in Mobisol mirrors our dedication to bridging the infrastructure gap and to alleviate climate change by conveying dependable, clean and reasonably priced alternatives to fossil fuels for lower income homes in Sub-Saharan Africa,” said Oumar Seydi, IFC Director for East and Southern Africa.

Also read:Solar power gains traction in East African rural areas

Joining IFC, who committed an equity investment of US $ 5.8 million, in the funding round is the AEF and MASSIF Dutch government funds managed by FMO, which invested US $ 9.8million.

IFC and FMO join Investec Asset Management’s African Private Equity Fund and DEG as investees in Mobisol.

“Our joint venture with Investec Asset Management, FMO and DEG will help distribute the Mobisol solar home systems to other regions of Africa,” said Seydi.