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. Through M-KOPA’s inclusive digital credit model, customers can build ownership over time by paying an initial deposit followed by flexible and affordable micro-payments. To date, the company has provided over $600 million in credit to over 2 million customers across Kenya, Uganda, Nigeria and Ghana.
What is our funding objective?
The funding relates to a re-investment of an existing USD15mln facility to the client, which will allow the company to continue the growth trajectory of its solar and e-mobility portfolio 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 PAYGO (energy) sector. The financing is an opportunity to back a market leader in East Africa.
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 labour 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 |
|---|---|
| 12/9/2022 | USD 0.15 MLN |
| 6/30/2017 | USD 5.50 MLN |
| 6/30/2017 | USD 5.50 MLN |
- Website customer/investment
- https://m-kopa.com/
- Region
- Africa
- Country
- Kenya
- Sector
- Energy
- Publication date
- 10/26/2022
- Effective date
- 12/23/2022
- Total FMO financing
- USD 15.00 MLN
- Funding
- FMO NV
-
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