Mobisol GmbH, a pay-as-you-go solar energy service company delivering renewable energy solutions to off-grid communities in East Africa has raised about $16 million to accelerate its growth in Rwanda, Tanzania and expand its operations in Kenya.

The funding round was led by IFC’s equity investment of EUR 5.42 million and EUR 9.2 million from the AEF and MASSIF Dutch government funds in partnership with Investec Asset Management’s African Private Equity Fund and DEG.

“Our partnership with IFC and FMO, alongside Investec Asset Management marks an important milestone in the growth history of Mobisol. We are excited by the value such a reputable list of global investors stand to bring to Mobisol. We can now concentrate on scaling and even better serving our customers,” said Thomas Gottschalk, Founder and CEO of Mobisol.

Mobisol has already installed over 67,000 solar home systems in Rwanda and Tanzania, giving access to electricity and the use of efficient appliances to over 330,000 consumers. The system is paid off by customers over three years via mobile money. This innovative payment approach keeps the cost of an entry-level Mobisol system similar to what the typical customer spends on kerosene, candles, batteries, and mobile phone charging while offering superior value.

IFC see the investment in Mobisol as a reflection of its commitment to bridging the infrastructure gap and to mitigating climate change by delivering reliable, clean and affordable alternatives to fossil fuels for lower income households in Sub-Saharan Africa where approximately 600 million people lack access to electricity.

“The funds made available through the Access to Energy Fund (AEF) and MASSIF will support sustainable energy solutions and steady access to energy for low-income households. This will eventually boost economic development, which fits FMO’s main inspiration to manage these funds on behalf of the Dutch Government”, said Linda Broekhuizen, Chief Investment Officer at FMO.

Mobisol has designed modular solar home systems, a clean, safe and affordable alternative to fossil fuels for low-income African households. Designed specifically for the African market, the systems power lighting, radios, stereos and TVs, and other household appliances such as fridges as well as small businesses such as mobile phone charging, running barber shops or village cinemas.