IFC, FMO invest in PAYG company to deliver decentralised solar to East Africa

Facebook
Twitter
LinkedIn
Reddit
Email
The investment will help Mobisol to expand its existing reach for home solar systems as well as expand into new territories. Source: Mobisol

The International Finance Corporation (IFC) and FMO, the Dutch development bank have invested a collective US$15.52 million (€14.62 million) in Mobisol, a German pay-as-you-go (PAYG) solar service company, in order to deliver renewable energy solutions to off-grid communities in East Africa.

The equity investment is split between €5.42 million from the IFC and €9.2 million from Dutch government funds managed by the FMO and is filtered into Investec Asset Mangement’s African Private Equity Fund and DEG, which has already invested in Mobisol.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Mobisol designs home solar PV systems as a competitive and safe alternative to expensive fossil fuels in the form of kerosene and diesel. Systems are paid off by customers over three years using mobile money transfers. The new IFC/FMO funds will enable the company to accelerate its growth in existing markets in Rwanda and Tanzania – where it has already installed more than 67,000 systems – and will aid its expansion into Kenya.

“Our partnership with IFC and FMO, alongside Investec Asset Management marks an important milestone in the growth history of Mobisol. We are excited by the value such a reputable list of global investors stand to bring to Mobisol. We can now concentrate on scaling and even better serving our customers,” said Thomas Gottschalk, founder and CEO of Mobisol in a statement.

“IFC’s investment in Mobisol reflects our commitment to bridging the infrastructure gap and to mitigating climate change by delivering reliable, clean and affordable alternatives to fossil fuels for lower income households in Sub-Saharan Africa,” said Oumar Seydi, IFC director for East and Southern Africa. “Our partnership with Investec Asset Management, FMO and DEG will help deliver the Mobisol solar home systems to other parts of Africa.”

“The funds made available through the Access to Energy Fund (AEF) and MASSIF will support sustainable energy solutions and steady access to energy for low-income households. This will eventually boost economic development, which fits FMO’s main inspiration to manage these funds on behalf of the Dutch Government”, also commented Linda Broekhuizen, chief investment officer at FMO.

This latest investment is just one of many ventures into climate change in Sub-Saharan Africa that the IFC has made, following its work with Scaling Solar in Senegal and Zambia. The investment builds on its work to support the development of off-grid solar through its Lighting Global programme, of which Mobisol is an associate; receiving advice on how to put out quality products, market effectively and expand its reach. 

Read Next

June 30, 2025
Voting on the US tax reconciliation bill is expected to begin in the Senate today, following a draft published on Friday that hit clean energy tax credits hard.
June 30, 2025
Australian module manufacturer Tindo Solar has secured a 30MW solar module supply agreement to power Australia's first "net zero pipeline”.
June 27, 2025
Renewables investment platform Nexwell Power has signed a round of power purchase agreements (PPAs) with “one of the largest” US tech companies for solar PV capacity to be built in Spain.
Premium
June 27, 2025
PV Talk: '2024 was a transformational year in terms of energy policy,' says Monika Paplaczyk ahead of this year's Clean Power 2030 Summits.
June 26, 2025
A group of minority shareholders in Norwegian silicon firm REC Silicon has triggered an investigation into the circumstances surrounding the closure of the company’s US polysilicon production site.
June 26, 2025
Nextracker will supply solar tracker systems to a 550MW solar PV project in the Greek province of Western Macedonia, owned by Greek renewables developer PPC Renewables.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Media Partners, Solar Media Events
July 2, 2025
Bangkok, Thailand
Media Partners, Solar Media Events
September 2, 2025
Mexico City, Mexico
Solar Media Events
September 16, 2025
Athens, Greece