d.light, a global provider of affordable household solar solutions for low-income households, recently closed a $176 million securitization (debt) deal to support its growth in Kenya, Tanzania, and Uganda. This new financing facility, funded in partnership with African Frontier Capital, aims to support consumer loans for solar and high-efficiency appliances in East Africa.
d.light CFO Ron Pfende highlighted the company’s adaptation to global economic challenges, noting that the pandemic and the war in Ukraine have significantly impacted disposable incomes, especially for low-income households. To address this, d.light has tailored its product strategy to cater to individual customer needs by unbundling multiple solar-powered packages into single products available for individual purchase, financed through their PayGo service.
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The new facility will enable d.light to provide reliable and renewable energy to an estimated 6 million people across Kenya, Tanzania, and Uganda over the next three years. By scaling up its PayGo consumer finance program, d.light aims to make solar-powered products more accessible to low-income households and communities with no access to electricity.
d.light has a strong track record of using securitized financing to deliver affordable solar-powered household products to off-grid communities in East Africa, partnering with distributors in Kenya, Uganda, and Tanzania since 2010.
