Project detail - LUMOS COTE D'IVOIRE S.A.

LUMOS COTE D'IVOIRE S.A.

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Who is our client

Lumos, Ivory Coast, provides solar home systems (SHS) to homes and business in emerging markets. Lumos is partnering with MTN under a 5-year contract benefits from MTN’s distribution network and unique payment platform. Customers pay an initial deposit followed by payments to discharge the battery according to how much days of electricity they purchase. After ~1,800 days the customer owns the SHS. After demonstrated success in Nigeria, Lumos has started a pilot in Ivory Coast (again with MTN) and is now looking for finance to further expand here.

Funding objective

Energy access in rural Africa solved via a green solution. This project has a strategic fit with the EN Department's off-grid strategy and allows for a regional diversification of our portfolio in this particularly risky sector. Greenfield risk of the facility is managed by structuring it as a secured receivable financing with milestone-based disbursements.

Why we fund this project

Access to Energy and access to finance continues to hold back social and economic development in Sub-Saharan Africa, even more so in West Africa, mainly because the lack of mobile money. Most off-grid players have moved into East Africa due to the maturity of the mobile money market making it easier to grow rapidly. Lumos was identified as one of the potential winners in West Africa and is well positioned to capture this under-penetrated market through its competitive advantage: unique partnership with MTN which makes distribution highly efficient. Lumos has already built strong track record in Nigeria and the pilot phase in Ivory Coast is performing as expected so far.

Environmental and social rationale

Lumos CI is a category C project with regards to E&S given that the company is purchasing the solar home systems and distributing them. The E&S impacts are considered minimal if non-existent.

Region
Africa
Country
Côte d'Ivoire
Sector
Energy
Signing date
12/18/2019
Total FMO financing
EUR 7.50 MLN
Fund
Building Prospects
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)
C