Long-term relationships for reaching scale:
ZOLA Electric, Global
A primary objective of SunFunder’s model is to support scale and commercialization of the energy access industry by providing reliable access to debt capital.
In July, we closed our third transaction with ZOLA Electric, formerly Off Grid Electric, alongside a values-aligned family office.
The working capital facility is central to the company’s plans to bring affordable and reliable solar energy to 2.7m people in Tanzania, Rwanda, Cote D’Ivoire, and Ghana over the next three years. The reduction in the use of kerosene lanterns – replaced by modern solar lighting – could alone result in a total of 250,000 fewer tons of CO2 emissions between 2018-2021.
ZOLA has powered the homes of over a million people through solar home systems paired with highly efficient LED lighting and small appliances such as radios and TVs. By paying for their systems through mobile money, those customers build a credit profile that can unlock access to other financial products.
We have grown alongside ZOLA since our first investment in 2014, building on that with a second transaction in 2017 before this $5m third loan. Our relationship with ZOLA demonstrates the impact of reliable access to debt capital.