- d.light enters into $30 million securitization facility, supporting its plan to acquire up to $125 million in energy assets.
- This funding is a partnership with the Eastern and Southern African Trade and Development Bank Group (TDB Group).
- Last year d.light’s PAY-GO model impacted over 1.6 million people, creating 2,000 jobs.
Solar lighting equipment provider d.light has secured fresh financing to increase availability of energy devices in households across Tanzania. The deal, which is a partnership with the Eastern and Southern African Trade and Development Bank Group (TDB Group) will fortify d.light’s existing financing, allowing the company to amplify the reach of its transformative Pay-Go personal finance service.
The company seeks to make solar-powered household products accessible to individuals and households with modest incomes. By leveraging securitized financing, d.light seeks to expand the availability of its cost-effective solutions, which include solar energy, battery storage, and more. The move not only benefits customers by enhancing their access to renewable energy but also contributes to fostering a sustainable and eco-friendly future.
The financial backing for this endeavour comes from TDB Group, an established partner in driving African innovation through investments. Their support serves as a testament to the commitment of both d.light and TDB Group towards uplifting underserved communities.
d.light’s expanding initiatives
With a total securitized financing exceeding $490 million since 2020, d.light showcases its dedication to driving change through sustainable energy solutions. This commitment is further solidified by their efforts in Tanzania, supported by TDB, as they continue to revolutionize the accessibility of affordable solar-powered products.
Globally, d.light’s PAY-GO model has already made a significant impact. Last year, it hit 1.6 million individuals, generating jobs and offsetting substantial carbon emissions. This proves the potential of d.light’s approach to driving both economic growth and environmental stewardship.
d.light’s Nick Imudia, emphasizes the scalability of this financing mechanism. With plans to expand this initiative across major sub-Saharan African markets this year, d.light is bringing affordable and reliable energy solutions to those in need.
Tanzania’s energy landscape
Tanzania, a country of vast geographic expanse and a population of over 63 million faces significant energy accessibility challenges. With only 40 per cent of the population enjoying access to electricity, d.light’s plan in Tanzania promises to transform lives and communities.
By maintaining a dedicated team on the ground, d.light ensures that its impact reaches remote corners of Tanzania. This commitment extends beyond just product distribution. The company aims to bolster its after-sales service network, ensuring sustained benefits for communities.
Building on this funding, d.light and its lending partner, African Frontier Capital, are introducing Brighter Life Tanzania 1 Limited (BLT1). This strategic step not only underscores d.light’s commitment to sustainable energy solutions but also signifies enhancing access and impact.
Eric De Moudt, founder and CEO of AFC, highlights the importance of social impact securitizations. Through initiatives like BLT1, d.light and AFC contribute to financial inclusion, equitable energy transition, and sustainable growth. This strategic alignment showcases a shared commitment to ensuring that clean energy’s benefits are extended to all, paving the way for a brighter future.
