BBOXX secured an $8-million loan from the Facility for Energy Inclusion Off-Grid Energy Access Fund (FEI OGEF). The local currency loan, one of the first to be made since the fund’s launch in 2018, accelerates BBOXX’s roll-out of solar home systems across Rwanda, its largest market.
The Rwandan Franc-denominated loan enables BBOXX to expand its operations and bring clean, reliable and affordable energy to many more individuals, communities and SMEs previously living without it. To date BBOXX has installed 80,000 solar home systems in customers’ homes and businesses in Rwanda. The innovative local currency loan mitigates the company’s medium-term FX related risks, as BBOXX customers make mobile money payments in Rwandan Francs to pay for their solar electricity.
This latest deal will help drive BBOXX’s collaboration with the government of Rwanda and make strides towards meeting its national electrification targets. It also builds on recent deals BBOXX has signed this year generating investment in Rwanda’s energy sector. BBOXX secured USD$31 million from Africa Infrastructure Investment Managers (AIIM) in January to scale its Rwanda operations, alongside its roll-out in Kenya and the Democratic Republic of Congo.
FEI OGEF is a $100 million blended finance debt fund that provides predominantly secured financing to support the growth of innovative companies in the off-grid energy sector. The fund is managed by LHGP Asset Management, the asset management arm of Lion’s Head Group. FEI OGEF is the off-grid window of the African Development Bank (AFDB) flagship initiative, Facility for Energy Inclusion. It has received funding from the AFDB, the Nordic Development Fund, the European Union, the Global Environment Facility and All-On Nigeria as well as debt financing from Calvert Impact Capital and the Prudential Insurance Company of America.