M-KOPA UGANDA LIMITED
Status: Completed 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 Solar is a world leading pay-as-you-go energy provider to off-grid homes. To date M-KOPA has connected well over 500,000 homes in East Africa to affordable, safe and clean energy. Its predominantly low-income customer base is accessing lighting, phone charging, radio and TV on daily mobile money payment plans that are less than the typical cost of kerosene.
What is our funding objective?
Funding will be utilised over the next three years to provide finance for pay-as-you-go solar installations in one million homes – on top of the 500,000 already connected.
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 facility is the first large debt facility for an off-grid solar company of its kind. This landmark facility is expected to catalyse more debt financing to the sector.
What is the Environmental and Social categorization rationale?
The Project is rated category C. M-Kopa's business activities, providing access to energy services by PV Solar Panels on a rent-to-own basis to households not connected to the electricity grid, identifies very little E&S impacts. M-KOPA provides clear instructions to prevent inadequate use of the solar panel and its gears. In terms of waste management, M-KOPA is in touch with the main waste recycler in Kenya (WEEE). 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 |
|---|---|
| 8/17/2022 | USD 1.00 MLN |
- Region
- Africa
- Country
- Uganda
- Sector
- Energy
- Effective date
- 10/6/2017
- End date
- 8/17/2022
- Total FMO financing
- USD 1.00 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