Dutch impact investor Oikocredit has lent $5 million to the African fintech company Yellow. The funding will enable Yellow to strengthen its operations in four countries in sub-Saharan Africa by rolling out more solar home systems for low-income households.
Yellow distributes pay-as-you-go solar kits and appliances in Malawi, Rwanda, Uganda, and Zambia. Since its inception in 2018, the company has supplied more than 300,000 solar-powered systems, serving nearly 1.5 million people.
With this recent financing, Yellow has planned to bring electricity access to around 89,000 underserved households in these countries. According to the solar home systems provider, access to clean energy for low-income communities will support the improvement of their living standards and earning potential.
Michael Heyink, Yellow’s Founder and CEO at Yellow, said, the credit facility from Oikocredit will enable the company to access local currency funding in several jurisdictions, providing them with a greater scope to serve more customers and give better services.
Siebren Wilschut, Investment Officer at Oikocredit, said their support to one of the fastest growing companies in the clean energy industry would help in improving energy access across Africa. With this recent investment, Oikocredit continues its commitment to achieving higher social impact in sub-Saharan Africa via renewable energy development.
The renewable energy produced by Yellow’s solar kits has helped avoid the emission of approximately 442,671 metric tons of carbon dioxide equivalent by replacing diesel generators. The company is backed by other financial partners, including Mirova SunFunder, Trine, fund manager Lion’s Head, and the Power Africa initiative of USAID.