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 the quality of life of local people.
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.
Cizo aims to bring electricity to more than 2 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.
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.
Zakari Darou-Salim, Union Togolaise de Banque’s General Manager, commented: “This operation demonstrates Union Togolaise de Banque’s commitment towards the most disadvantaged populations who currently do not have access to electricity in Togo.”
“We are pleased to be working with BBOXX on this strategic project that is not only transforming energy but also creating jobs in rural areas for Togolese people. We hope to strengthen our partnership with BBOXX, which is driving the social and economic development of our country.”
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.
Following a tender process, BBOXX was awarded a contract to work with the Government of Togo 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.
Mansoor Hamayun, Chief Executive Officer of BBOXX said, “Raising local capital for an energy access initiative in sub-Saharan Africa is incredibly innovative – it is great to see a Togolese bank providing Togolese capital to unlock a project that will benefit thousands of Togolese people.”
“The deal with Union Togolaise de Banque will also make financial matters much more straightforward for us and will help drive our expansion across Togo.”
“We are already providing our services and the on-grid experience they bring to customers in Togo and are looking forward to continuing to work in collaboration with the Government through 2018 and beyond.”