The FSD Africa Investments, an investing arm of FSD Africa, has invested $4.5m in Nithio FI, a renewable energy financing intermediary focused on the Pay as You Go off-grid solar sector, to provide reliable and sustainable renewable energy solutions for households and small businesses in Kenya, Nigeria and Uganda.
The company made this known in a statement made available to Financial Street on Tuesday.
According to the company, over the next five years, Nithio FI aims to provide financing to over 224,000 energy access products across the continent, including solar home systems and productive use appliances.
It said FSDAi’s investment will complement Nithio FI’s $23m raised, alongside $5m from EDFI ElectriFI (the Electrification Financing Initiative funded by the European Union), and a commitment of $10m from the United States International Development Finance Corporation.
It will also complement the commercial equity supplied by Nithio Holdings, the FSDAi said, adding that by end of 2021, Nithio FI aims to raise an additional $25m.
Speaking of the development, the Chief Executive Officer, FSD Africa, Mark Napier, was quoted as saying, “Investing in sustainable and efficient sources of power will be essential to building a greener, more inclusive future for African economies. Through this investment, we hope to contribute towards tackling both the continent’s climate challenge and the power gap which still leaves many behind.
“The falling cost of renewable energy technologies means that our investment in Nithio will enable clean electricity to be provided in a way that is accessible across the continent, while also scaling up efforts to meet Africa’s sustainable development goals.”
The Chief Investment Officer, FSD Africa Investments, Anne-Marie Chidzero, stated, “Innovation must play a central role in closing the power gap in Africa. By leveraging the technical and analytical capabilities of Nithio, we are ensuring that those communities most in need are provided priority access to renewable electricity. With renewable energy emitting the least greenhouse gases and air pollutants, both the planet and our health will benefit from the investment in greener power sources.”
The Nithio Co-Founder and CEO, Héla Cheikhrouhou, said,“In order to achieve universal energy access by 2030, last mile financing must scale to the billions. Nithio has developed an innovative approach powered by its Risk Analytics Engine to lend to small, medium, and large off-grid energy operators to drive scalable connectivity. We are excited to work with FSD Africa Investments to achieve this goal.”
On his part, the United Kingdom Minister for Africa, James Duddridge, added, “Through the UK’s partnership with Financial Sector Deepening Africa and organisations such as Nithio, we are supporting thousands of Africans to access more affordable, sustainable and reliable energy solutions and improve standards of life. As the UK prepares to host the COP26 climate conference, we recognise that investing in clean and sustainable energy will transform lives and help communities become more resilient to the impacts of climate change on the continent.”
