EDFI ElectriFI, the EU-funded impact investment facility, has committed to an investment of a $1.5 million convertible note in Vitalite Zambia Ltd., a pioneer of pay-as-you-go solar home systems in Zambia. The funding will support Vitalite’s plan of granting access to clean energy to more than half a million Zambians over the next four years.
According to the EDFI ElectriFI, the financing is being accessed from the 11th European Development Fund for Zambia. This dedicated widow is designed specifically for the African country in collaboration with the Government, the EU Delegation to Zambia, and Common Market for Eastern and Southern Africa (COMESA).
The $1.5 million convertible note will be converted into an equity stake in Vitalite Zambia upon its next equity raise. EDFI Electrifi has said the investment will provide the company with enough funds at its disposal to operate and focus on its strategies and goals in the coming years, before working on the next fundraising.
Quentin De Hoe, ElectriFI Senior Investment Officer at EDFI Management Company, said the new investment will help Vitalite to continue the impact it is having on the lives of Zambians, bringing clean, affordable electricity access to many off-grid communities in the country. This funding is a perfect complement to the grant of Beyond the Grid Fund for Africa (BGFA) that Vitalite secured last year.
Jonatan Ala-Mutka, Vitalite Zambia’s Managing Director, appreciated EDFI’s support on their journey toward clean and sustainable energy provision for all Zambians. The $1.5 million funding will allow Vitalite to continue leading the way in inducing productivity for over 500,000 people in the next few years through innovative and smart solar power solutions.
