Mobisol has raised 10 million Euros from Finnfund (Finnish Fund for Industrial Cooperation Ltd.) to bolster its operations in Tanzania, Rwanda and Kenya.
The funds will support Mobisol’s fast expansion in East Africa, where the company installed nearly 10 megawatts of capacity in Tanzania, Rwanda and Kenya, providing clean and reliable electricity to households and small businesses in low-income communities and pave the way for further growth.
“Mobisol is very pleased about the sustained support from Finnfund, which allows us to further ‘plug in the world’ and connect more people to a reliable source of energy,” said Thomas Gottschalk, Chief Executive Officer at Mobisol. “This is not only adding to the socio-economic growth in insufficiently served regions in East Africa, but also contributes to a greener and more sustainable future globally.”
The German-based rent-to-own solar home recently acquired Lumeter, a pioneer pay-as-you-go (PAYG) software firm for the off-grid solar industry to build new generations smart meters for its solar systems and mini-grid solutions.
Finnfund already provided senior loan to the firm in 2016 and late in the year the firm raised $16 million 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.
In February 2016, Mobisol officially launched in Kenya after connecting 40,000 homes and 200,000 beneficiaries during its pilot phase in East Africa. Mobisol wants to enable particularly rural families and business owners to power a range of appliances, such as televisions, stereos and refrigerators to improve their standard of living and earn incremental income through solar-powered businesses, such as mobile phone charging stations, barber salons, movie theatres and more.
Jaakko Kangasniemi, Chief Executive Officer of Finnfund, commented: “Finnfund is excited to support Mobisol’s work and expansion in East Africa. For us, as an impact investor, the key is that supplying electricity to new areas can improve human lives, reduce inequality, and even help people out of poverty. Simultaneously, the use of renewable energy helps us to fight against climate change, one of the biggest challenges of our time.“