Energy+, a Malian off-grid solar company, secured financing from a consortium of international financing partners, among which Cordaid Investment Management, to help close the electricity gap in Mali.
Last week, Energy+ announced it has received more than US$1 million in commitments from a consortium of financing partners. The funding includes equity and fully funded enterprise development services (EDS) from VentureBuilder, which led the round, debt from Cordaid Investment Management, and grant financing from the United States African Development Foundation (USADF).
60 per cent of Malians have no access to electricity
Mali is one of the most populous nations in West Africa, with 60 per cent of its 20 million people still living without access to modern electricity services. The financing package will enable Energy+ to scale its off-grid business throughout the country through the expansion of its pay-as-you-go and cash sales offerings via its retail network.
The financing secured from VentureBuilder, Cordaid and USADF arrives at a critical stage for Energy+, which is well-positioned to leverage its deep experience in Mali to navigate the challenges presented by the COVID-19 pandemic while also delivering life-changing electricity services to underserved areas of the country.
“In countries such as ours, pay-as-you-go is the best way to bring quality solar home systems to off-grid areas because it makes energy access easy and affordable. With the help of VentureBuilder, Cordaid and USADF, we will be in a position to transition, in a strategic manner, from a producer of small electrical batteries to a large scale distributor of high-quality solar products”, says Simballa Sylla, CEO of Energy+.
“Energy+ is an exciting addition to our growing Malian SME portfolio.”
Hann Verheijen, Managing Director of Cordaid Investment Management
“Energy+ brings a powerful combination of remarkable execution capability alongside decades of market experience”, says Dan Murphy, Managing Director of VentureBuilder. “With our financing and advisory support, we’re confident the Energy+ team is well-positioned to mitigate the downside risks associated with the COVID-19 pandemic and to blend their unique local market knowledge with international good practice.”
Jobs and clean energy
Hann Verheijen, Managing Director of Cordaid Investment Management: “Energy+ is an exciting addition to our growing Malian SME portfolio. Energy+ will create jobs and bring clean energy where it is most needed, and the experienced promoters have shown that they can deliver despite a very challenging market. We look forward to a long-term partnership with Energy+ to finance their continuing growth, and in doing so meet our social impact ambitions in Mali and the region,”
C.D. Glin, President and CEO of USADF: “We are proud to support Energy+ alongside VentureBuilder and Cordaid. Our investment in Energy+ is aligned with USADF’s mandate to support African off-grid energy enterprises to help them grow, overcome the many hurdles they may face as entrepreneurs, and reach underserved communities in Africa. In Mali, as part of our efforts in the region through USADF’s Sahel-Horn Off-grid Energy Challenge, we look forward to helping Energy+ increase access to electricity and support the digitization of the off-grid sector through pay-as-go systems.”