M-KOPA KENYA LIMITED
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
M-KOPA is a connected asset financing platform that offers millions of underbanked customers access to life-enhancing products and services. The company provides solar home systems and appliances, cookstoves, smartphones and digital financial services on a ‘pay-as-you-go’ basis, enabling customers to access products that they would otherwise not be able to afford on a cash basis. To date, the company has served over 1 million customers and disbursed over $400m of financing across Kenya, Uganda and Nigeria.
What is our funding objective?
The facility includes an increase of USD3mln (split 50/50 between AEF and MASSIF) in 2021 on top of the existing receivables facility with M-Kopa Kenya. This will allow the company to continue its growth trajectory, and provide more products to its customers.
Why do we fund this investment?
Access to energy and access to finance of the Base of the Pyramid (BOP) continues to hold back social and economic development in Sub Sahara Africa. Availability of local currency debt financing is widely seen as a bottleneck for growth of the off-grid energy sector. The financing is an opportunity to back a market leader in East Africa. M-KOPA has the longest track-record of providing SHSs to its customer base. This original facility was the first large debt facility for an off-grid solar company of its kind - the proposed facility increase comes on top of this.
What is the Environmental and Social categorization rationale?
The Project is rated category B. Activities come with potential limited adverse risks associated with waste management and labor conditions. The following Performance Standards are triggered by the transaction: PS 1 Assessment and Management of Environmental and Social Risks and Impacts PS 2 Labor and Working Conditions PS 3 Resource Efficiency and Pollution Prevention PS 4 Community Health, Safety and Security. PS 5 is not triggered as there is no land acquisition for the project. PS 6 is not triggered as no Biodiversity Conservation and Sustainable Management of Living Natural Resources were identified. PS 7 is not triggered because no impacts on local groups qualifying as Indigenous were identified. PS 8 is not triggered, as no cultural objects or places were identified.
More investments
| Date | Total FMO financing |
|---|---|
| 12/23/2022 | USD 15.00 MLN |
| 12/9/2022 | USD 0.15 MLN |
| 6/30/2017 | USD 5.50 MLN |
- Region
- Africa
- Country
- Kenya
- Sector
- Energy
- Effective date
- 6/30/2017
- Total FMO financing
- USD 5.50 MLN
- Funding
- AEF-I
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B