ZOLA Electric, formerly Off Grid Electric; FMO, the Dutch development bank; and Symbiotics, an investment firm, announced a $32.5 million facility to finance the growth of ZOLA’s Tanzania operations over the next 5 years.
FMO is the lead arranger in the financing package that will grow ZOLA Electric’s service delivery in Tanzania, helping an additional 145,500 households to access affordable grid. The investment is expected to create around 2,100 new jobs in off-grid solar.
ZOLA currently powers more than 1,000,000 customers across 5 countries and employs more than 1,000 people.
“The investment from FMO and Symbiotics will allow us to connect more people in Tanzania, support the communities in which we operate and continue the development of our industry-leading power systems,” Bill Lenihan, co-CEO, ZOLA Electric, said.
The FMO-arranged senior loan will consist of $5 million from the Access to Energy Fund (AEF), which catalyses the investment of $12.5 million from FMO-A and $15 million from Symbiotics. The tenor of the loan is five years. ZOLA Electric borrows the money in its local currency, the Tanzanian shilling.
ZOLA Electric designs renewable power solutions based on the latest in solar, battery and power electronics technology.