The government of Togo’s energy access initiative has received a significant boost following the completion of a pioneering debt finance deal worth $4 million. The deal is the first of its kind in sub-Saharan Africa as it unlocks locally raised capital to deliver a government project aimed at improving quality of life of its citizens.
The Togolese government’s CIZO initiative, in which BBOXX is a key player, is focusing on providing access to reliable and sustainable energy for communities across the country.
Union Togolaise de Banque (UTB), a local bank, is behind the deal which will deliver capital in Togolese currency for BBOXX, a next generation utility providing energy access to communities across Togo. In addition, Africa Guarantee Fund, which assists financial institutions increasing their financing to African SMEs, provided a 50% pro rata credit enhancement, giving further weight to the deal.
BBOXX started its operations in Togo in December 2017 and has made significant progress in its roll out of its smart solar home systems, installing 500 systems so far. Following a tender process, BBOXX was awarded a contract to work with the government to roll out 300,000 of its solar home systems in the country by 2022. BBOXX aims to create more than 1,000 direct jobs in Togo in the next five years from its activities.
The innovative partnership is part of the government’s aim to dramatically improve access to electricity for people in Togo, particularly in rural areas. The mission of CIZO is to bring electricity to more than two million citizens by 2022. It will also provide the adoption of mobile payment solutions across rural areas, helping to improve the financial inclusion of rural communities.