TRINE and Energy4Impact Raise Funds for Pawame in Kenya
Wednesday, August 30, 2017  Printer Friendly Email this article

Debt crowdfunding platform TRINE, is raising funds for a Kenyan renewable energy business. TRINE launched a campaign to fund a loan to Pawame, a solar home system distributor.

The €150,000 loan is to finance pay-as-you-go solar home systems from Fosera. This will provide 6,513 people with electricity.

Energy 4 Impact and German solar manufacturer Fosera will provide a co-guarantee on the loan, representing 50% of the loan value. The guarantee is designed to protect crowdfunding lenders in the case of loan default. The guarantee represents the first of this kind in the off-grid energy space. Energy 4 Impact is providing the guarantee under the Crowd Power program, established in April 2015 to test different interventions in energy access related crowdfunding.

Pawame has been active in Kenya since May 2016 and raised $50,000 on debt crowdfunding platform Kiva in April 2017, inclusive of $10,000 in match funding from the Crowd Power program. Pawame has grown quickly since entering the Kenyan market last year and has installed 2,000 systems.

The co-guarantee provided by Fosera and Energy 4 Impact will guarantee up to 50% of the loan value ($88,500) on a declining balance basis, so the value of the guarantee will reduce as the loan is repaid by the borrower (and the 50% guarantee will be applied to the outstanding balance). 

“This co-guarantee is an important step for the off-grid energy sector, particularly companies in their earlier stages of growth, as it shows that there are alternatives to a paralyzing working capital bind. We also hope to showcase what can happen when we think outside the square and involve multiple players in the industry. Stakeholders in the off-grid energy sector need to work together to tackle the financing challenges faced by off-grid energy businesses,” says Davinia Cogan, Project Manager at Energy 4 Impact.

Swedish crowdfunding platform TRINE partnered with Energy 4 Impact under the Crowd Power program in 2015. TRINE is a debt crowdfunding platform focused exclusively on the off-grid solar market in Africa. This is the eighth campaign Crowd Power has supported on the platform

Site Search

HOME | ABOUT | CONTACT © 2008 Alternative Energy Africa. All rights reserved. Designed & Developed by Shift