As the whole world seeks to reduce the usage of fossil fuel and go green, it is imperative that we all turn to use the power of the sun. That is why Ghana’s solar company PEG Africa is expanding its operations across the West African sub-region.
Headquartered in Ghana, PEG Africa is a pay-as-you-go (PAYG) solar company that gives out some of its products on credit, especially those in rural areas where the traditional power grid doesn’t reach.
The solar company has now announced it has raised an amount of $5 million debt funding round from Electrification Financing Initiative (ElectriFI). This funding going is to help the company to continue the growth in its existing markets in the West African region.
Currently, PEG Africa is operating out in 3 West African countries including Ghana, Cote d’Ivoire, and Senegal. PEG Africa uses a PAYG financing model to provide credit for solar home systems to underserved households in these West African countries.
At the moment, the number of households it serves is well over 60,000, which translates to more than 400,000 daily users.
Back in March this year, it was reported that the company was able to raise a US$25 million Series C funding from its existing and new investors towards the end of last year. That funding raised the company’s total raised funding to date to US$50 million.
It has now secured a US$5 million debt funding from the Electrification Financing Initiative, which is funded by the European Union. The Electrification Financing Initiative was established by 15 European Development Finance Institutions and it is being managed by the EDFI Management Company.
The debt funding, which comes in the form of subordinated junior debt, will be used by PEG Africa to open up its operations in the current countries and spread to other West African nations.
The chief executive officer of the company, Hugh Whalan, is of high hopes as he said PEG has been almost doubling in size every year since 2015.
“The fact we are now able to raise a significant amount of our funding in debt demonstrates that our approach is financially sustainable. We are delighted to work with ElectriFI to further accelerate our growth,” he said.
One of the products from PEG Africa that it gives out on credit is its solar home systems. The company provides this service on credit to underserved households in West Africa via its PAYG financing model.
This will help the customers to replace their perpetual spending on poor-quality polluting fuels such as kerosene with solar energy.
The Funds Manager for ElectriFi, Dominiek Deconinck, has applauded the solar company and said the initiative was ready to give PEG Africa the needed support to help it grow its operations in Africa.
“With 82.000 direct new connections by the end of 2019, together adding not less than 1.7 MW with solar home systems, ElectriFI’s investment in PEG will strongly contribute to improving quality of life through renewable energy in the markets it operates in.”
Currently, PEG Africa has over 400 full-time staff and more than 550 commission-based sales agents across the 3 across it is operating in.