Greenlight Planet seeks financing to support solar power expansion
Greenlight Planet, which provides solar-powered home energy systems and financing in sub-Saharan Africa, plans to seek new finance to pay for expansion, CEO T. Patrick Walsh tells The Africa Report.
In September, the company secured $90m in funding from investors including the CDC Group, FMO, and Norfund. The finance is being used to replace unsecured with secured debt, to reduce the interest rate, says Walsh. About $69m of the $90m has been drawn down, and once it is all used, new funds will be needed.
Greenlight will consider raising both debt and equity, says Walsh, who is based in San Francisco. But it’s too early to say how much will be sought.
The company distributes pay-as-you-go (PAYG) solar products under the Sun King brand in Kenya, Tanzania, Uganda and Nigeria. In November 2019, the company partnered with Orange to provide clean energy solution to Orange’s customers.
It’s possible that Greenlight will seek to enter new African countries in the next six to 12 months, depending on the course of the COVID-19 pandemic, says Walsh.
One side-effect of the COVID-19 pandemic has been to tempt governments to levy higher taxes on solar power, which can make adoption harder, says Walsh. Governments should “see the necessity” of solar products for people who have no other alternative and are generating dangerous kerosene fumes when they cook, he adds.
Source : theafricareport
