Malawi: SunFunder invests $4m in off-grid solar company
SunFunder, which provides debt financing for solar enterprises working in emerging and frontier markets, announced a new $4 million facility for Yellow, a fast-growing off-grid solar provider in Malawi.
The loan will support the company’s growing sales of solar home systems. With over 110,000 units sold, Yellow has improved energy access for more than 400,000 people, mitigating 12,000 tonnes of CO2 emissions per year as they replace kerosene with clean solar lighting and other devices.
Like many businesses distributing solar home systems in off-grid areas, Yellow offers customers credit by selling its products on a pay-as-you-go (PAYGO) basis.
“Yellow has quickly established itself as a leading off-grid solar operator,” said Collins Kuindwa, investment officer at SunFunder. “We are particularly pleased to be starting this new partnership having stayed in contact since their early days. Supporting new players, as a trusted advisor and partner rather than just financier, is built into SunFunder’s own journey helping to establish the off-grid solar sector.”
“The mission to electrify millions of households in Africa through the efficient distribution of PAYGO solar home systems is an incredible commercial, social and environmental opportunity. We are thrilled to have a leader in the field like SunFunder endorse Yellow’s business model, and provide the finance to enable our continued expansion,” said Mike Heyink, Yellow’s founder and CEO.
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