Acumen’s Hardest-to-Reach (H2R) Catalyze initiative has closed a $5 million equity investment in Sun King’s Zambia subsidiary. The investment will support Sun King’s expansion in Zambia, a market with significant unmet demand, while helping unlock local currency financing for its growth.
Sun King designs, finances, distributes, installs, and services solar systems for households and businesses with zero or limited access to electricity. Sun King provides a range of products spanning entry-level solar kits that deliver lighting and phone charging, to multi-kilowatt solar inverter systems capable of powering large homes, businesses, schools, and public health centres. Its pay-as-you-go model allows customers to buy a system on a loan repaid over 12 to 24 months in daily, weekly, or monthly instalments by mobile money, from as little as $0.26 a day.
“Since launching in Zambia, we have confirmed there is tremendous unmet demand for reliable, affordable solar energy in communities the grid hasn’t reached,” said Krishna Swaroop, chief financial officer at Sun King. “Acumen’s investment gives us the capital and the confidence to continue our nationwide rollout. We’re proud to bring our products to more Zambian households and businesses, and grateful to Acumen for making this the first equity investment into one of our country-level businesses.”
“Sun King’s proven track record across other markets, combined with the clear demand for affordable, clean energy in Zambia, gave us confidence that its model could scale quickly in this newer market,” said Sandra Halilovic, head of H2R Catalyze. “Our investment was designed to help accelerate that scale and close the energy access gap faster, while also crowding in local currency debt from local financial institutions. By providing equity capital that helps unlock additional financing from local lenders, we can extend the impact well beyond our own investment.”
Acumen H2R is a $250 million initiative designed to activate clean energy markets in 17 of Africa’s underserved geographies. Using a variety of financial instruments, H2R invests in off-grid solar companies working to provide energy access for unelectrified households.
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