A pay-to-own solar system will be developed in Zambia by MTN, Africa’s largest telecoms company, in partnership with Fenix International, who is extending ReadyPay Power.
Customers will pay as little as US$0.20 per day to buy solar home systems using MTN’s Mobile Money, until the system is paid for and owned by the customer.
Credit store is issued by the daily payments meaning that unbanked customers can access system upgrades and financial services.
The project will be funded by Sweden and the US. The Swedish embassy in Zambia is providing almost US$3 million, as part of the Power Africa: Beyond the Grid Fund, with USAID adding US$75,000.
Fenix aim to provide homes and small businesses with affordable electricity, reaching 850,000 Zambians with solar power by 2020.
80% of Zambians, around 15 million people, of which 95% are rural residents, have no access to the grid.
Lyndsay Handler, CEO of Fenix International said Zambians use “dangerous candles and kerosene” to light their homes.
Fenix International, energy and finance company, is the largest provider of off-grid solar in Uganda, serving 120,000 customers using the pay-to-own service.
MTN has facilitated pay-as-you-go solar models, where customers can pay using mobile phone credit in other African countries, such as Nigeria.