Reading Time: 2 minutes
UK-based cleantech company, Bboxx Ltd., has reportedly acquired PEG Africa, a solar power provider for rural households and SMEs in Ghana. This acquisition, if confirmed, will become a significant step by Bboxx to support its expansion in West Africa.
Bboxx, which specializes in the designing, manufacturing, and distribution of plug and play solar systems has purportedly offered US$ 300 million to the Ghanaian solar power start-up. The acquisition of PEG Africa is still subject to customary closing conditions, which also include an agreement with lenders.
However, such a large acquisition in the renewable energy market would require the approval of the energy authorities in Ghana as well as the financial partners of PEG Africa, who have multiplied in recent years. PEG Africa’s financial partners include Acumen Fund, Blue Haven Initiative, British International Investment, Energy Access Ventures, Renewable Energy Performance Platform, SunFunder, Total Energy Ventures, etc.
PEG Africa has remarkably developed in West Africa over the last few years. Apart from Ghana, the company distributes its solar home systems (SHSs) in Ivory Coast, Mali, and Senegal. Co-founded by Hugh Whalan and Nate Heller in 2013, the solar solutions provider employs more than 1,000 workers and provides affordable products to under-served customers in West Africa.
Bboxx’s comprehensive ambition is to become one of the largest next-generation power utilities in the world. Since Africa is a significant focal point for Bboxx, the company is prepared to consolidate its position by merging with or acquiring existing energy companies. If the deal is confirmed, it will support Bboxx’s aim to accelerate its expansion in the West African sub-region, where more than 150 million people still lack access to electricity.
A few months ago, Bboxx the company announced its entry into the Nigerian energy market with the target of electrifying 20 million people in 10 years. The company has the support of Nigeria’s Rural Electrification Agency (REA) as well as local authorities, and an initial performance-based grant (OBF) has been signed among the Bboxx’s Nigerian subsidiary and the authorities for the electrification of 70,000 rural households via solar home systems.
Bboxx continues to expand in the Democratic Republic of Congo (DRC), where the company has strengthened its partnership with the government authorities to provide access to clean cooking and electricity for 10 million people by 2030. The British company also operates in Kenya, Rwanda, and Togo and has already deployed more than 500,000 SHSs, impacting the lives of more than 2 million people in sub-Saharan Africa.