Persistent Energy Ghana (PEG) has secured $7.5 million funding that will enable the off-grid solar company to expand its operations in the West African nation and enter Ivory Coast.
The $4.3 million investment is led by Energy Access Ventures and includes Blue Haven Initiative; existing investors Investisseurs &Partenaires (I&P) and Engie Rassembleurs dÉnergies. It follows a $3.2 million investment in September 2015.
Dr. Michael Gera, Managing Partner of EAV said, “We are immensely proud to be investing in PEG. EAV was hugely impressed with PEG’s leadership team and greatly looks forward to working with the company and its other investors.”
“PEG represents our first investment in West Africa, a region that has been under the radar of most energy focused investors for far too long, and Blue Haven Initiative is excited to welcome PEG into its portfolio of innovative energy and fin-tech companies in Africa,” Lauren Cochran, Director of Private Investments, Blue Haven Initiative added.
PEG uses “pay-as-you-go” technology to give loans for solar home systems to off-grid and mostly rural households who are considered risky by banks and micro-finance institutions.
The company’s customers are typically farmers or fishermen living in peri-urban or rural areas who earn $1-$10 per day.
PEG allows customers to repay the loans over time and in small increments, reaching many people who would otherwise be unable to afford such products.
Customers not only receive access to clean, convenient light, radio and phone charging but also start building a credit history with a PEG loan, which can transform their ability to access finance.
The “pay-as-you-go” technology allows PEG to control assets remotely in the field while they are being used and repaid by customers.
PEG operates 29 service centres in 7 regions in Ghana and has more than 10, 000 customers.