LUMOS COTE D'IVOIRE S.A.
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
Lumos, Ivory Coast, provides solar home systems (SHS) to homes and business in emerging markets. Lumos is partnering with MTN under a 5-year contract benefits from MTN’s distribution network and unique payment platform. Customers pay an initial deposit followed by payments to discharge the battery according to how much days of electricity they purchase. After ~1,800 days the customer owns the SHS. After demonstrated success in Nigeria, Lumos has started a pilot in Ivory Coast (again with MTN) and is now looking for finance to further expand here.
What is our funding objective?
Energy access in rural Africa solved via a green solution. This project has a strategic fit with the EN Department's off-grid strategy and allows for a regional diversification of our portfolio in this particularly risky sector. Greenfield risk of the facility is managed by structuring it as a secured receivable financing with milestone-based disbursements.
Why do we fund this investment?
Access to Energy and access to finance continues to hold back social and economic development in Sub-Saharan Africa, even more so in West Africa, mainly because the lack of mobile money. Most off-grid players have moved into East Africa due to the maturity of the mobile money market making it easier to grow rapidly. Lumos was identified as one of the potential winners in West Africa and is well positioned to capture this under-penetrated market through its competitive advantage: unique partnership with MTN which makes distribution highly efficient. Lumos has already built strong track record in Nigeria and the pilot phase in Ivory Coast is performing as expected so far.
What is the Environmental and Social categorization rationale?
Lumos CI is a category C project with regards to E&S given that the company is purchasing the solar home systems and distributing them. The E&S impacts are considered minimal if non-existent.
- Region
- Africa
- Country
- Côte d'Ivoire
- Sector
- Energy
- Publication date
- 11/4/2019
- Effective date
- 12/18/2019
- Total FMO financing
- EUR 7.50 MLN
- Funding
- Building Prospects
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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) - C