Status: Approved investment
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FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more

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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

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.

More investments

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
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)