Acumen jointly with Novastar has announced a €2 million ($2.5 million) equity investment in SolarNow, a Uganda-based firm that sells modular high quality solar home systems to rural populations.
The company also provides a financing solution that allows customers to pay for the system for a period of 18 months.
This investment in SolarNow gives an opportunity to make a difference in the lives of individuals and families who are currently without access to electricity, said, Duncan Onyango, director, East Africa, Acumen.
SolarNow’s innovative solution coupled with accessible asset finance aligns well with Acumen’s mission of changing the way the world tackles poverty by making critical goods and services accessible to underserved low income communities.
In Uganda, over 25 million, which consist of 85 percent of the population lives without access to electricity. SolarNow has set a target of changing over 3 million lives in Uganda providing these systems by 2017 expanding to Tanzania and Kenya in future.
This investment enables SolarNow to focus on fulfill the demands of clients and expand to new franchises especially in under-served areas of the country.
SolarNow’s well -developed distribution network as well as the quality of equipment and service is of impressive quality. They raise the bar for low-income customers in terms of affordability, reliability and service guarantees, said, Andrew Carruthers, Novastar.
Novastar and Acumen’s support as a great acknowledgment of the business model followed by the company as an asset finance and distribution firm with a focus on renewable energy, and bringing together affordability and distribution with great products is what justifies this trust, said, Willem Nolens, CEO, SolarNow.
Acumen has invested over $30 million across East Africa since 2007, focusing on a wide range of sustainable, scalable businesses that use market-based approaches to deliver products and services to millions of low income people from both rural and urban communities.