d.light, a leading provider of affordable solar-powered household products, has successfully secured a $30 million securitization facility from the Eastern and Southern African Trade and Development Bank Group (TDB Group). This funding, which has the potential to support up to $125 million of receivable assets, will be instrumental in d.light’s efforts to expand solar access in Tanzania.
The capital from this facility will be utilized to amplify d.light’s existing securitized financing facility in Tanzania. The company aims to scale up its Pay-Go personal finance service, enabling more low-income households to afford their solar-powered products and contribute to sustainable energy solutions.
This achievement propels d.light’s total securitized financing to $490 million since 2020, with the Tanzanian facility being anchored by TDB. The company has long been a pioneer in developing securitized finance models to raise equity for off-grid solar projects.
Tanzania’s Solar Revolution with d.light’s Pay-Go Model CEO of d.light, Nick Imudia, expressed how this funding would be pivotal in reaching more low-income families in Tanzania through their Pay-Go business model. By facilitating affordable access to solar energy, the initiative will significantly contribute to both customers’ well-being and the environment.
Imudia emphasized the significance of green energy investments in building a sustainable future. He highlighted how the securitization model has successfully advanced their goals in Kenya and is now expanding to Tanzania, a country where only 40% of the population has electricity access.
TDB CEO Michael Awori emphasized the critical role of energy access in sustainable development. He applauded d.light’s efforts to extend its reach and positive impact to off-grid communities through renewable energy solutions.
Tanzania, with its vast geographic spread and limited grid connectivity, is a prime candidate for d.light’s solar-powered solutions. The company’s finance facility leverages customer payments to further its solar initiatives, allowing for growth and market expansion in the country.
With this successful funding, d.light plans to create a new financing vehicle, Brighter Life Tanzania 1 Limited (BLT1), in collaboration with lending partner African Frontier Capital (AFC). This vehicle will contribute to the expansion of local currency receivables financing, empowering d.light’s commitment to financial inclusion and clean energy access.
As d.light continues to empower underserved communities, its initiatives serve as a beacon of change, driving sustainable development and equitable energy transition in Tanzania and beyond.
