West Africa-based pay-as-you-go (PAYG) solar company has PEG Africa has raised USD 4 Million in a round of funding led by CDC Group, a development finance institution.
The company will employ the new fund to increase its reach in Senegal where it has recently recorded a great deal of traction. Thousands of Senegalese are currently subscribed to the services of PEG Africa; however, the solar company will not slack but will double down on its efforts in the country.
PEG Africa Chief Executive Officer (CEO) Hugh Whalan said, “Senegal has been growing far quicker than expected, and has reached profitably within its first year.
“With the continued backing of CDC Group, we expect our growth in Senegal to continue. Importantly, we believe that we will be able to apply our learnings and expansion playbook to yield superior results as we grow into future markets.”
According to reports, the solar company had last month recorded another financial win as it raised USD 5 Mn from ElectriFi initiative to finance its expansion in West Africa where it currently serves 400,000 daily users in Côte d’Ivoire, Senegal, and Ghana.
Before this PEG Africa had raised USD 25 Mn Series C funding from CDC Group and existing investors SunFunder and responsAbility.
The Head of Energy Access and Efficiency at CDC Group, Geoffrey Manley said, “CDC is pleased to back PEG Africa to help fuel their expansion in Senegal. We’re proud of our partnership with PEG, which is bringing the phenomenal impact of pay-as-you-go solar to new and underserved markets in West Africa with a focus on financial sustainability and innovation.”
The CDC had recorded some exploits in the power sector in West Africa in the past few years. In 2018, it entered into a partnership with Globeleq, an independent power producer, to invest USD 66 Million in developing a solar PV plant in Kenya.
Eary 2019, the CDC Group launched Gridworks, mandated to invest over USD 300 Mn in electricity networks across Africa.
The majority of Africans still lack access to electricity but this might change as investors like PEG Africa are coming in to ensure there is a boost in the generation, distribution, and access to electricity in the continent.
