M-Kopa, a Kenyan solar energy company is set to expand its market by venturing into Tanzania and Uganda through a Sh.2 billion that was raised from an equity round.
The company CEO Mr. Jesse Moore, who spoke to The Nation newspaper, said that that the Sh.2 billion is being used to equip their clients with modern solar equipment and also in spreading their business around the region so that more people can embrace their products.
He said that London-based Generation Investment Management LLP was the main organization that helped them in raising that amount through equity together with some others.
M-Kopa deals in making affordable solar products for low- income households who pay for the services whenever they use them (Pay-per-earn). Customers acquire solar systems for a small deposit, then purchase daily usage for Sh.50, or less that the price of kerosene.
Their main clients are from the rural areas where electricity seems to be a nightmare, as a good number are not connected. After one year of using the solar systems, clients are in a position to go ahead and upgrade to more power.
Mr. Moore disclosed that over 40,000 Kenyans have embraced their products and services by acquiring things like mobile phones, cooking stoves and even television sets then paying for them over a long period of time at the rate of Sh.50 per day.
Since the rural areas have been neglected in terms of developments, and if they happen, they tend to be very slow, M-Kopa saw that as an opportunity for them to invest and at the same time improve lives of the people.
More than 280,000 households across East Africa have been connected with sola power from M-Kopa. The company too is equipping people with affordable household items apart from connecting them with solar energy.
Article by Vera Shawiza.