Norfund invests in rural solar energy company

Norfund, the Norwegian government’s investment fund for developing countries, is investing €10 million in equity in Baobab+, a distributor of solar home systems in West Africa and Madagascar.

The financing from Norfund comes at a time when Baobab+ has demonstrated its robustness despite the Covid-19 pandemic crisis: as of August 2021, Baobab+ had experienced sustained annual growth of more than 60%.

Baobab+, present in Côte d’Ivoire, Mali, Senegal and Madagascar, has equipped 220,000 households and served more than 1,200,000 beneficiaries in the past five years.

This funding will allow the company to strengthen its presence in its existing countries and deploy operations in Nigeria and the Democratic Republic of Congo.

Alexandre Coster, co-founder and CEO of Baobab+, said: “I am very happy that Baobab+ is taking this next step, made possible by the incredible work done by our teams in the field over the past five years. We are fortunate to have Norfund at our side as we move forward. We share many common values.”

Tellef Thorleifsson, CEO of Norfund, commented: “Increased access to electricity greatly improves the living standard of people living in rural or poor areas, and Baobab+ has proven its ability to deliver great impact through a sustainable business model. Norfund is looking forward to supporting the company in bringing affordable solar energy to even more households and expanding into new markets through our first investment in the solar home system space in Francophone Africa.”

Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.