Source: ZOLA Electric

In Tanzania, an estimated 145,500 households will soon have access to reliable and affordable power through the recent signing of a $32.5 million finance facility.

FMO the Dutch development bank and lead financier, signed with ZOLA Electric and Symbiotics, an investment firm specialised in emerging, sustainable and inclusive finance on Monday.

Bill Lenihan, Co-CEO, ZOLA Electric: “We are excited to announce this new investment from FMO and Symbiotics. It will allow us to connect more people in Tanzania, support the communities in which we operate and continue the development of our industry-leading power systems.”

Chris Wurdemann, Vice President of Corporate Finance, ZOLA Electric continued: “ZOLA’s technologically advanced product offering and innovative business model have attracted an incredible group of strategic and capital partners.

“FMO and Symbiotics join a roster of strategic and capital partners that is the strongest in the industry, including Tesla, Total, EDF, DBL Partners, Helios Investment Partners, GE Ventures and SunFunder.”

Additionally, the investment is expected to create around 2,100 new jobs in off-grid solar.

According to a company statement, despite their ongoing works, there is still significant unmet need and untapped potential. There is growing recognition of the potential for distributed renewable energy to disrupt power supply and the sector is attracting significant investment interest.

Bill Lenihan, Co-CEO, ZOLA Electric: “We are excited to announce this new investment from FMO and Symbiotics. It will allow us to connect more people in Tanzania, support the communities in which we operate and continue the development of our industry-leading power systems.”

Chris Wurdemann, Vice President of Corporate Finance, ZOLA Electric continued: “ZOLA’s technologically advanced product offering and innovative business model have attracted an incredible group of strategic and capital partners.

“FMO and Symbiotics join a roster of strategic and capital partners that is the strongest in the industry, including Tesla, Total, EDF, DBL Partners, Helios Investment Partners, GE Ventures and SunFunder.”

Rosemarijn van der Meij, Fund manager of the Access to Energy Fund (AEF), managed by FMO: “The off-grid sector is developing fast and receiving increased attention from investors but is still perceived as high risk; few players have reached profitability.

“This transaction fits FMO’s inclusive business and green strategy as well as the core theme in the strategy of the Access to Energy Fund: providing access to energy for the unreached rural communities.”

In addition to the current financing, FMO provided Technical Assistance to ZOLA, to put a credit scoring system in place.

The FMO-arranged senior loan will consist of $5 million from the Access to Energy Fund (AEF), which catalyses the investment of $12.5 million from FMO-A and $15 million from Symbiotics. The tenor of the loan is five years. ZOLA Electric borrows the money in its local currency, the Tanzanian shilling.