FSD Africa Investments (FSDAi), the investment arm of FSD Africa, is investing $4.5 million in Nithio. The platform that finances stand-alone solar systems powered by artificial intelligence will reinvest the funds in solar kit providers operating in at least three sub-Saharan African countries.
As part of a $23 million fundraising effort, Nithio, the off-grid solar financing platform, has secured $4.5 million from FSD Africa Investments (FSDAi), the investment arm of FSD Africa. The funds will be used to deploy stand-alone electricity access solutions for households and small businesses in Nigeria in West Africa, and Uganda and Kenya in East Africa.
With its fundraising, Nithio aims to finance the installation of 220,000 solar home systems in rural areas by private companies. FSD Africa justifies the funding to Nithio by the fact that nearly 600 million people across the African continent are still expected to be without electricity in 2030, unless significant progress is made in expanding access to finance, according to forecasts by Gogla, an off-grid solar energy industry association.
Solar kits will help increase the rate of access to electricity in Africa. These easy-to-deploy clean energy systems are also accessible to rural populations with limited purchasing power. To overcome this barrier, solar home system providers allow households to pay for their solar home systems in small amounts (pay-as-you-go) via mobile money.
“Innovation must play a central role in closing the electricity gap in Africa. By leveraging Nithio’s technical and analytical capabilities, we are ensuring that the communities that need it most are given priority access to renewable electricity. Renewable energy emits the least amount of greenhouse gases and air pollutants. The planet and our health will benefit from investing in greener energy sources,” says Anne-Marie Chidzero, FSD Africa Investments’ Investment Director. Stand-alone electrification solutions are already gaining momentum in the countries benefiting from FSD Africa Investments’ funds.