d.light Secures $176 Million to Power East Africa with Affordable Solar Solutions

d.light, a leading provider of solar-powered products and financing solutions for low-income households, has secured a significant investment to expand access to clean energy in East Africa. The company closed a new securitization facility worth USD $176 million, funded by social impact-focused asset management company African Frontier Capital.

This funding will empower d.light to leverage its PayGo consumer finance program and deliver solar products to millions across Kenya, Tanzania, and Uganda. The company estimates that the initiative will bring reliable, renewable energy to approximately six million people within the next three years.

Key Takeaways:

• d.light’s $176 million facility signifies a major boost for off-grid solar solutions in East Africa.
• The funding will fuel d.light’s PayGo program, making solar power more accessible for low-income households.
• Millions of people in Kenya, Tanzania, and Uganda are expected to benefit from this initiative.

This isn’t d.light’s first foray into securitized financing. Since 2020, the company has successfully closed five separate facilities, totaling over USD $718 million. This demonstrates their established track record and commitment to tackling energy poverty in sub-Saharan Africa.

d.light CEO Nedjip Tozun said, “This new facility is another landmark step in d.light’s mission to provide people with affordable energy that is also clean, safe and sustainable. It lets us expand our reach so that millions of off-grid families across Kenya, Tanzania and Uganda can experience the benefits of solar energy. Facilities like this make possible our pioneering PayGo consumer financing model with which we are able to offer solar home systems and high efficiency appliances to the people that need them most in a way that is affordable and sustainable.”

“With this new facility, d.light has for the first time in its history receivables-based financing facilities in each of our PayGo markets – Kenya, Uganda, Tanzania, and Nigeria. These facilities allow d.light to remain consistently cash flow positive and remove the requirement for further external equity fundraising to fund our growth,” he adds.

d.light’s commitment to providing affordable and sustainable energy solutions empowers communities in East Africa. This new funding strengthens their ability to bring clean power to millions, improving lives and livelihoods across the region.