This investment was made when British International Investment was named CDC Group.
We have now exited this investment. This is what we achieved.
Achieved impact
Our investment sought to supply low-cost electricity to low-income households through solar home systems. It allowed customers to make payments through pay-as-you-go financing, enabling them to ‘lease’ the system and pay in small increments daily or weekly through mobile money.
We worked closely with M-KOPA to establish the capacity and systems necessary to continually improve the effectiveness of their environmental and social management system. Alongside M-KOPA and other off-grid solar companies, lenders and industry stakeholders, we have worked to strengthen consumer protections and improve e-waste management.
Expected impact
In 2017 we provided local currency debt financing as part of a $55 million facility alongside Stanbic, FMO and Norfund across Kenya and Uganda. This was a landmark deal in the off-grid energy sector, being the largest commercial local currency debt facility to date for a pay-as-you-go company. This facility was refinanced.
Over 600 million people in Africa live without access to reliable and affordable grid-based electricity.
M-KOPA’s pioneering systems use solar energy to power lights, a torch and a radio (which are provided by the company), as well as mobile phone charging.
The system runs through a control box, which contains a mobile data chip, through which customers can buy credit for their power.
Our investment will enable M-KOPA to provide low-cost electricity to low-income customers in Kenya, via daily mobile payment plans on a lease-to-own basis. This allows them to replace highly polluting kerosene with a long-term, sustainable electricity producing system.
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
-
Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- December 2024
- Project number
:
An identifier number shared by investments in the same project.
- D2859
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Exited
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- East Africa
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Uganda
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Sub sector
:
The sub-sector that the investment is made into; this provides a more granular level of detail than the ‘sector’ information
- Specialized Finance
- Investment type :
- Debt
- Start date :
- October 2017
- End date :
- February 2023
- Amount :
- $2m
- Currency of investment :
- UGX
- Domicile
:
The company or investment fund’s place of incorporation.
- Uganda
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Energy type
:
‘Renewable’ includes energy sources with very low lifecycle emissions such as solar, wind and tidal or those meeting a certain criteria such as hydro power, biomass or geothermal. ‘Fossil fuel’ includes coal, oil and gas. Investments labelled as ‘Mixed’ support a combination of renewable and fossil fuel assets.
- Renewable
- Last updated
