Investment company, InfraCo Africa, is injecting new funding into United Kingdom-based Bboxx, the solar home system company, it has emerged.
The funding is in the form of $15 million in convertible loan notes from InfraCo Africa, an investment company of the Private Infrastructure Development Group (PIDG). The funding will enable Bboxx to expand its operations in sub-Saharan Africa.
The London (UK) based company mainly distributes solar home systems in rural areas. Bboxx is also diversifying its activities by offering less polluting means of cooking, powered by liquefied petroleum gas (LPG). The company is already present in Rwanda, Kenya, the Democratic Republic of Congo (DRC), Togo and, very recently, in Nigeria.
The company is reportedly negotiating to set up in Ghana by taking over the activities of its competitor, PEG Africa, for a cost of $300 million. This transaction has not yet been confirmed.
But, if validated, the acquisition of PEG Africa will propel Bboxx into several West African markets, including Mali, Ivory Coast and Senegal. According to Bboxx, its services already reach 2.5 million people worldwide, mainly in Africa.
The recent transaction with InfraCo Africa “contributes significantly to our mission of transforming the lives of millions of people in developing countries and to the achievement of the United Nations’ Goal 7 of clean energy for all by 2030,” says Mansoor Hamayun, Bboxx’ chief executive officer.
A few months before the completion of the InfraCo Africa deal, Bboxx secured a $5.5 million loan from the Africa Go Green Fund for Renewable Energy and Energy Efficiency (AGG), a fund launched by the German Development Agency (KfW) to promote private investments that mitigate or reduce greenhouse gas (GHG) emissions. This loan will support the distribution of Bboxx clean energy access kits in rural areas of sub-Saharan Africa.