Angaza & SIMA launch a clean energy access fund for distributors
by techmoran 2019-11-27
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source: techmoran

Angaza, together with SIMA, announces the launch of the SIMA Angaza Distributor Financing Fund (DFF), a data-driven investment fund that will provide much-needed access to debt capital for distributors.

DFF will invest in distribution companies working to provide clean energy access for all in emerging markets, thus addressing one of the biggest barriers to their growth: lack of funding opportunities. 

While investments in the off-grid sector increased by 20% from 2017 to 2018, the growth rate falls short of meeting the $5.7 billion needed until 2022 to sufficiently accelerate the sector. This dearth of funding especially impacts distributors selling life-changing products on a pay-as-you-go basis. These distributors need capital to fill the cash flow gap they experience by virtue of receiving installment payments over time instead of the full price of the product at the point of sale.  

To financially strengthen distributors providing affordable access to life-changing products, the SIMA Angaza Distributor Financing Fund will launch with an initial investment from Ceniarth and the Skoll Foundation, and from the Shell Foundation, a UK charity that is also introducing funding from the UK Department for International Development, USAID, and Power Africa.