Financing from Oikocredit, responsAbility and SunFunder will support PEG’s goal of supplying 500,000 households with off-grid energy by 2020
Social investor Oikocredit has teamed up with asset manager responsAbility and solar finance specialist SunFunder to provide financing to PEG Ghana, a supplier of solar home systems to low-income and rural communities in West Africa.
The loan marks Oikocredit’s first investment in renewable energy in West Africa.
Oikocredit, responsAbility and SunFunder will each lend USD 500,000 (EUR 437,365) to support the growth of PEG Ghana, which provides solar home systems to households in West Africa on a pay-as-you-go basis. PEG Ghana will use the USD 1,500,000 (EUR 1,312,095) loan to support its goal of providing off-grid solar to half a million households in West Africa by 2020.
Solar home systems provide clean energy and have the potential to improve living conditions, income, health and education. PEG Ghana is currently the largest supplier of off-grid solar in Ghana, with customers typically earning between USD 1 and USD 6 per day.
David ten Kroode, Oikocredit’s renewable energy manager, said: “We particularly like PEG’s ability to offer flexible payment plans to its customers and are also impressed by PEG’s operations, including their ability to analyse customer data and adjust their business model accordingly.
“We hope to support PEG in achieving meaningful growth. Off-grid solar for improving the living standards of economically disadvantaged people is a big opportunity in Ghana and the rest of West Africa.”
Oikocredit has over 40 years’ experience in funding partner organizations active in inclusive finance (including microfinance), agriculture and renewable energy. Oikocredit’s loans and investments enable people living on low incomes to sustainably improve their living standards. Oikocredit finances more than 790 partners in over 70 countries and its outstanding capital totals € 941 million. www.oikocredit.coop