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The government of Togo’s energy access initiative has received a significant boost following the completion of a pioneering debt finance deal worth US$4mn
The deal is the first of its kind in sub-Saharan Africa as it unlocks locally raised capital to deliver a government project aimed at improving quality of life of local people.
The Togolese Government’s ‘Cizo’ initiative, in which BBOXX is a major player, is focusing on providing access to reliable and sustainable energy for communities across the country.
Union Togolaise de Banque (UTB), a local bank, is behind the deal which will deliver capital in Togolese currency for BBOXX, a next generation utility providing energy access to communities across Togo.
In addition, Africa Guarantee Fund, which assists financial institutions increasing their financing to African SMEs, provided a 50 per cent pro rata credit enhancement, giving further weight to the deal.
Following a tender process, BBOXX was awarded a contract to work with the government of Togo to roll out 300,000 of its solar home systems in the country by 2022. The company aims to create more than 1,000 direct jobs in Togo in the next five years from its activities.
The innovative partnership is part of the government’s aim to improve access to electricity for people in Togo, particularly in rural areas. The mission of ‘Cizo’ is to bring electricity to more than 2 million citizens by 2022. It will also provide the adoption of mobile payment solutions across rural areas, helping to improve the financial inclusion of rural communities.
Zakari Darou-Salim, union Togolaise de Banque’s general manager, commented, “This operation demonstrates Union Togolaise de Banque’s commitment towards the most disadvantaged populations who currently do not have access to electricity in Togo.”
The strategic project aims to transform energy and create jobs in rural areas for Togolese people, Darou-Salim added.
Mansoor Hamayun, CEO of BBOXX, said, “The deal with Union Togolaise de Banque will also make financial matters much more straightforward for us and will help drive our expansion across Togo.”
“We are already providing our services and the on-grid experience they bring to customers in Togo and are looking forward to continuing to work in collaboration with the Government through 2018 and beyond,” Hamayun noted.
Apart from Togo, BBOXX has operation in Kenya, Rwanda, Nigeria and Cameroon in Africa. The company has so far deployed 150,000 of its systems, improving the lives of more than half a million people in 35 countries, providing reliable electricity for lights, smart phones and home appliances to off-grid rural communities.