MICROCAPITAL BRIEF: Angaza, SIMA Launch Distributor Financing Fund for Off-grid Solar Power

Angaza, a provider of “pay-as-you-go” metering technology, and US-based Social Investment Managers and Advisors (SIMA), recently announced the launch of the SIMA Angaza Distributor Financing Fund (DFF), an investment vehicle that will lend to distributors of off-grid solar energy equipment. The partners expect the use of Angaza’s data tools by DFF’s partner distributors to “reduce the duration and complexity of due diligence.” DFF has received initial investments of undisclosed size from the UK-based Shell Foundation and the following US-based organizations: Ceniarth; the Skoll Foundation; and the US Agency for International Development, via its Power Africa initiative. Angaza has offices in Kenya and the US.

Lesley Marincola, the CEO of Angaza, said, “Many distributors cite lack of access to working capital as their number one barrier to growth; the SIMA Angaza Distributor Financing Fund aims to solve this. This fund will have a catalytic impact in driving business growth for distributors by leveraging centralized, real-time data analytics to de-risk working capital loans and attract more lenders to invest.”

Gareth Zahir-Bill, the director of operations at the Shell Foundation, said, “Through the SIMA Angaza Distributor Financing Fund, we are proud to back an innovation that makes increasing access to affordable solar energy in underserved communities economically viable.”

Angaza’s pay-as-you-go service allows people to buy products with a downpayment plus a series of micropayments. These micropayments, which may be made in cash or electronically, can be due on a schedule or on a pay-as-you-go basis. In the latter case, the device can be enabled remotely for a certain span of usage each time the user makes a payment of a certain size. The user then can choose when to have the device re-enabled by making another payment.

Established in 2015, SIMA provides commercial capital and advisory solutions to create and scale profitable businesses with positive financial, social and environmental impacts. In partnership with three management entities, SIMA has created 14 international debt and equity impact funds that have aggregate assets of USD 740 million.

By Anna Gravois, Research Associate

Sources and Additional Resources

Angaza press release
https://www.angaza.com/2019/11/19/distributor-financing-fund/

Angaza homepage
https://www.angaza.com

SIMA homepage
http://simafunds.com

Ceniarth homepage
https://ceniarthllc.com

Skoll Foundation homepage
http://skoll.org

Shell Foundation homepage
https://shellfoundation.org

Power Africa webpage
https://www.usaid.gov/powerafrica

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