FSD Africa’s funding contributes to Nithio FI’s first raise of US$23 million to scale off-grid energy financing in Kenya, Nigeria, and Uganda.
Tuesday, June 22, 2021: FSD Africa Investments (FSDAi), the investing arm of FSD Africa, has today invested US$4.5m in Nithio FI, a renewable energy financing intermediary focused on the Pay as You Go (PAYG) off-grid solar sector, to provide reliable and sustainable renewable energy solutions for households and small businesses in Kenya, Nigeria, and Uganda
Nithio Holdings is an AI-enabled energy financing platform whose mission is to standardize credit risk assessments and therefore drive more capital to the sector, including by investing directly and efficiently in off-grid solar companies. Over the next five years, Nithio FI aims to provide financing to more than 224,000 energy access products across the continent, including solar home systems (SHS) and productive use appliances.
Despite the increasing interest in Africa’s off-grid solar offerings, GOGLA’s statistics reveal that investment in the sector has stalled over the last five years. In addition, nearly 600 million people across the continent are still expected to be without electricity in 2030 unless there is significant progress in scaling up financing access.
“Innovation must play a central role in closing the power gap in Africa. By leveraging the technical and analytical capabilities of Nithio, we are ensuring that those communities who are most at need are provided priority access to renewable electricity. With renewable energy emitting the least greenhouse gases and air pollutants, both the planet and our health will benefit from the investment in greener power sources.”
Anne-Marie Chidzero, Chief Investment Officer, FSD Africa Investments
