Ghana-based pay-as-you-go (PAYG) solar company, PEG Africa, has raised a debt funding of $5 million from ElectriFI to boost expansion in its existing West African market.
The company revealed in a statement that the fund raised will be used to help grow PEG Africa’s existing markets in Ghana, Cote d’Ivoire and Senegal.
Speaking on the fund raised, Hugh Whalan, the CEO of PEG Africa, said the fact that the company is able to raise a significant amount in funding shows that the company’s approach is financially sustainable.
The fact we are now able to raise a significant amount of our funding in debt demonstrates that our approach is financially sustainable. We are delighted to work with ElectriFI to further accelerate our growth.
Hugh Whalan, the CEO of PEG Africa
Dominiek Deconinck, ElectriFI Fund manager expressed strong support for PEG Africa. He said the company was thrilled to help with improving quality of life through renewable energy.
With 82.000 direct new connections by the end of 2019, together with adding not less than 1.7 MW with Solar Home Systems, ElectriFI’s investment in PEG will strongly contribute to improving quality of life through renewable energy in the markets it operates in.
Dominiek Deconinck, ElectriFI Fund manager
Established in 2013 by CEO Hugh Whalan and COO Nate Heller, PEG Africa finances and deploys solar power to consumers (underserved households) and SMEs in West Africa using a PAYG financing model. PEG is currently serving over 60,000 households with 400,000 daily users in Ghana, Cote d’Ivoire and Senegal, and has recently expanded into solar water irrigation.
PEG Africa raised $25 million Series C round from existing and new investors towards the end of 2018. Earlier this year, the company also secured a $15 million senior debt facility from UK DFI, CDC and SunFunder. The latest $5 million debt funding by ElectriFI Innovative Financing brings the funding raised by the company to over $50 million.
PEG Africa, since its launch, has shown great progress. The CEO Hugh Whalan revealed that since 2015 the company has almost been doubling every year in size. PEG recently won ‘Small Business of the year’, and ‘Off-Grid Energy Supplier of the Year’ in Ghana, evidence that their growth is being recognised.
Other prestigious awards won by PEG include the International Ashden Award (UK) for Innovative Financing, one of the Inclusive Fintech 50 selected by the MetLife Foundation, Visa, non-profit Accion and World Bank member IFC, and recognition by London Stock Exchange as one of the Fast Growing Companies in Africa.
By providing credit for useful and productive assets, PEG has helped customers gain ownership of assets that they would not otherwise be able to afford. With the new catalyst fund and working PAYG business model PEG Africa employs, they can continue their West African expansion and maybe soon launch into the Nigerian market.
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