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Nithio, the AI-driven clean energy financing platform has secured an investment from the UK charity Shell Foundation, funded by the Anglo-Dutch oil company Shell. This investment will help Nithio to support the development of renewable energy based on artificial intelligence in the African region.
The Shell Foundation is funding Nithio FI (Financial Intermediary), an investment vehicle set up by the Nithio which specializes in financing renewable AI-based energy projects. Nithio FI loans are powered by its unique Risk Analytics Engine, leveraging geospatial data, consumer repayment data, artificial intelligence, and financial modeling that helps to standardize credit risk assessments, inform due diligence, and impact monitoring.
Nithio FI currently provides receivables-backed lending to the renewable energy providers in Kenya, Uganda, and Nigeria. Through this investment vehicle, Nithio anticipates providing electricity to 3.5 million people and avoiding emissions of 250,000 tons of CO2 equivalent by 2025.
The Shell Foundation’s catalytic investment, co-funded by UK Aid, will enable Nithio to reduce risk and unlock additional commercial investment in its open-ended financing vehicle. These types of investments will help Nithio to expand energy access and scale climate change adaptation and mitigation efforts across Africa.
According to a statement by Kate Steel, the Co-Founder and Chief Executive Officer of Nithio, “Shell Foundation and Nithio share a common mission of taking a data-driven approach to scaling investment in sustainable, affordable energy.”
Ashish Kumar, Climate & Innovation Lead, Shell Foundation, said, “We see Nithio FI’s innovative receivables financing model leading to financial aggregation as a significant stepping-stone towards mobilizing large-scale private climate finance.”
In Nigeria, for example, Nithio has invested in Winock Solar, A4&T Power Solutions, and VEP. Similarly in Kenya, the company has invested in Rafode. Nithio is also supported by the U.S. Finance Corporation for International Development (DFC), EDFI ElectriFI (Electrification Financing Initiative), FSD Africa Investments (FSDAi), etc.