Mobisol, one of Africa’s leading providers of off-grid solar home systems, has secured a total of $25m in the last six months for growth in Africa after Investec Asset Management’s latest follow-on growth equity investment alongside its consortium partners.
The Investec consortium’s follow-on growth equity investment, combined with recently concluded debt-financing deals, means that Mobisol has secured over US$25 million funding in the last 6 months and ensures that Mobisol will have sufficient capital to electrify tens of thousands of additional households in East Africa.
According to Thomas Gottschalk, Founder and CEO of Mobisol, “Mobisol’s partnership with the Investec consortium allows us to further grow and to set the stage for providing reliable and affordable solar energy solutions to 20 million people by 2023.”
Mobisol, headquartered in Berlin, provides low-income African households with solar home systems able to power lighting, radios, stereo, mobile phone charger, a TV, and, depending on system size, other appliances such as irons, refrigerators and other productive use equipment.
A significant proportion of Mobisol customers generate income from their SHS, providing services such as mobile-phone charging or hair cutting, or running some other small business (e.g. a small shop with LED lighting and refrigeration or a village cinema with projector).
Since inception Mobisol has installed over 100,000 solar home systems in Tanzania, Rwanda, and Kenya, enabling some 500,000 people to enjoy clean, affordable and reliable solar energy. reaching a capacity of 10 MW.
Mobisol’s off-grid solar systems offer an attractive and highly scalable solution to addressing the energy needs of Africa where more than 600 million people across Africa still do not have access to electricity.
Investec made an initial equity investment into Mobisol in late 2016 with participation from the International Finance Corporation (IFC) and Financierings Maatschappij Ontwikkelingslanden (FMO), the Dutch development-finance institution among others.
Over the past year this consortium has supported Mobisol’s continued growth in its existing markets of Tanzania and Rwanda and its expansion into Kenya.
“Since our initial investment Mobisol has continued to successfully expand its operating footprint, most notably with entry into Kenya, whilst also strengthening and innovating around its product offering and its business model,” said Mark Jennings, an Investment Principal in Investec Asset Management’s private equity team. “This, combined with a disciplined approach to on-the-ground execution and a strong commitment to quality and reliability, positions Mobisol for further strong growth and impact.”
In July this year, Mobisol raised 10m Euros from Finnfund (Finnish Fund for Industrial Cooperation Ltd.) to bolster its operations in Tanzania, Rwanda and Kenya.