OFF-GRID ELECTRIC TANZANIA LIMITEDStatus: Approved investment
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Who is our customer
Off-Grid Electric Tanzania LTD (active under the brand name ZOLA Electric) is one of the leading providers of Off-Grid solar home systems in Tanzania. The company’s business model consists of the design, manufacture, distribution, and financing of various solar-powered energy solutions, through a Pay-As-You-Go offering. Customers pay off their system and associated devices through a 3-year pay plan.
What is our funding objective?
The objective of the investment is to allow Off-Grid Electric Tanzania to continue its expansion in the market. The proceeds of the funds will primarily be used to fund the acquisition of inventory and the general scale-up of the business.
Why do we fund this investment?
Off-Grid Electric Tanzania provides clean and green first time energy access to households in areas with unreliable or non-existent grid connection. Increased energy access contributes to productivity of households and economic growth (lighting and charging allows work and study beyond sunset), and helps power small businesses. FMO provides financing in Local Currency, which reduces the risk profile of the company.
What is the Environmental and Social categorization rationale?
Off-Grid Electric Tanzania is a E&S category B project. Activities come with potential limited adverse risks associated with waste management and labour conditions.
|Date||Total FMO financing|
|9/30/2019||EUR 0.04 MLN|
- Tanzania, United Republic of
- Publication date
- Effective date
- Total FMO financing
- USD 12.50 MLN
- FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C)