Bboxx, a next-generation utility tackling the global energy poverty crisis, has officially launched in Nigeria, Africa’s most populous nation and Bboxx’s largest market to date. Bboxx’s entry into Nigeria offers the prospect of solar power creating carbon-neutral homes, while reducing fuel bills for cost-conscious households, CEO Mansoor Hamayun commented.
The company supplies pay-as-you-go solar home systems. Nigeria, which is Africa’s largest market for diesel generators, has the potential to become “the world’s largest off-grid market,” Hamayun says in London. Nearly half of the population has no access to electricity, and many of those who do face an “extremely unreliable” grid, he says.
According to the World Bank, lack of reliable power costs Nigeria $26.2bn (about 2% of GDP), per year. In February, the bank approved $500m to support improvements in electricity distribution, including investment in on- and off-grid renewable energy. The World Bank’s involvement is one factor that led Bboxx to enter the market, Hamayun says. “The starting point is great.”
Operations have already successfully commenced in southwest Nigeria, with the first shop opening in Ijebu Ode, Ogun State. Over the course of the year, Bboxx will serve rural communities in other states including rural Lagos, Oyo, Ondo, Osun, and Ekiti.
With 45% of Nigerians living without access to electricity, rising to 74% for the rural population2, there is a significant opportunity to positively impact the lives of millions through clean energy provision. Supporting rural communities will be a key focus, and Bboxx is targeting small business owners and market traders in particular. SMEs contribute 48% of national GDP, account for 96% of businesses and 84% of employment in Nigeria3.
The launch of Bboxx Nigeria includes funding from BEAM, an investment platform focused on energy services helping to transform lives in emerging markets. BEAM was set up in 2018 by Bamboo Capital Partners, the pioneering private equity firm delivering positive social and financial value, and Bboxx.
Mansoor Hamayun, CEO and Co-Founder of Bboxx, commented: “As the largest economy in Africa, it is hugely important that clean energy access is accelerated in Nigeria. This will positively transform people’s lives, powering inclusive and sustainable economic development. As the climate crisis gathers pace, we recognise that there is still a long way to go before we meet the UN Sustainable Development Goal 7 – clean energy for all. This latest launch is definitely a step in the right direction and we have an ambitious pipeline ahead. We are passionate about making clean energy as accessible as possible in the developing world.
“The off-grid clean energy market in Nigeria has significant untapped potential. As we expand our operations in the country, we’re empowering thriving SMEs and communities to unlock economic potential through affordable energy access. With COP26 just around the corner, we would love to open further dialogue with those who share our mission, as we firmly believe in the importance of partnerships to deliver meaningful change.”
Florian Kemmerich, Managing Partner at Bamboo Capital Partners added: “Scaling access to capital is absolutely fundamental to the success of the off-grid energy sector in Nigeria. By deploying and unlocking greater levels of capital, there’s a huge market opportunity to bring clean energy to the millions of people living without it. We’re looking forward to Bboxx ramping up operations to make an even greater impact on the sustainable development of SMEs.”
Bboxx’s Pay-As-You-Go SHS makes energy access much more affordable as people only pay for what they use. In the future, Bboxx will also launch their wider range of products and services in the country, like LPG clean cooking solutions, solar-powered water pumps for farmers, smartphones and more. Prior to this launch, Bboxx’s SHS products were already available in some parts of Nigeria through its successful collaboration with distribution partner Pan African Solar (PAS).
Bboxx’s systems run on its comprehensive management platform Bboxx Pulse®, enabling clean energy access to be scaled to places previously considered too expensive or difficult to reach via traditional grid infrastructure. This model has brought Bboxx’s tech-enabled off-grid energy to two million people globally, with substantial operations in countries including Rwanda, Kenya, Togo, and the Democratic Republic of Congo. This latest market entry comes as Bboxx accelerates momentum on entering new markets, having already launched earlier this year in Burkina Faso.
