PEG Africa, a solar pay-as-you-go (PAYG) solar company has been able to raise a $25 million funding. PEG raised this money from existing and new investors of the company. This makes its total funds raised to date US$50 million. The company is going to use this latest round of investment to help it gain more roots in West Africa.
PEG Africa runs its operations in West Africa. It already operating in West African countries including Ghana, Cote d’Ivoire, and Senegal.
The company operating in West Africa gives credit for some of its products. Such products include 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.
Hugh Whalan is the CEO of PEG Africa. Whalan said he believes that the company has the potential of becoming a very large organisation by focusing on the solar needs of its underserved clients.
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“As the first PAYG financing company to set up in West Africa, we have always felt that we could build a large, profitable business by being laser-focused on financing the solar needs of underserved customers in this region. Our solar solutions deliver better, cleaner and cheaper energy to our customers, and we have been successful at expanding rapidly and profitably while improving the lives of some of the poorest and most vulnerable in the countries we operate in.”
CEO Whalan continued, “More than 50 per cent of PEG’s customers earn less than US$3 per day, while 89 per cent do not have access to the national electricity grid, and 82 per cent never received financing or access to credit before PEG entered their lives.”
PEG Africa, in the West African region, serves over 60,000 households with more than 300,000 beneficiaries. The company provides services to these households through its 70 service centres. The company also has over 400 full-time staff and 550 commission based sales agents.
Total Energy, another big energy company also sees PEG’s way of solving electricity problem as the way to go. The Senior Investment Manager at Total Energy Ventures, Ademidun Edosomwan, said, “We have been following PEG for a while, and PEG’s leadership in West Africa, where Total also has a large footprint, made it a logical investment.”