Baobab+, a French energy and technology company active in six African countries, recently partnered with TradeLenda, a Nigerian financial services company serving small and medium-sized enterprises (SMEs), to expand lending to SMEs to buy solar generators, freezers and refrigerators. SMEs will be able to purchase these items from Baobab+ by borrowing from TradeLenda with “flexible repayment options.” The down payment on the loans will range from 15 percent to 30 percent to access 600 watts to 5 kilowatts of solar energy. Solar energy solutions will range from NGN 500,000 (USD 610) to NGN 5 million (USD 6,100).
Kolawole Osinowo, CEO of Baobab+, stated, “This partnership reflects our shared vision of promoting renewable energy access and economic empowerment for SMEs in Nigeria…. Together, we will provide SMEs with the means to access clean energy solutions that advance their business growth.”
Baobab+, which serves Congo, Cote d’Ivoire, Madagascar, Mali, Nigeria and Senegal, is a subsidiary of the Baobab Group, a France-based corporation whose other subsidiaries are microfinance institutions (MFIs) in China and eight African countries. Baobab+ sells its products – a total of 250,000 since its founding in 2015 – through many of the Baobab Group’s MFI subsidiaries. As of 2022, Baobab Group had 4,300 employees serving 457,000 customers with EUR 335 million (USD 366 million) in deposits held. During that year, the group disbursed loans totaling EUR 1.0 billion (USD 1.1 billion) with an average loan amount of EUR 4,570 (USD 5,000).
Founded in 2021, TradeLenda is a Nigerian financial services company looking to make financing easier for SMEs. Its offerings include loans, digital banking, investing, asset financing and insurance. As of November 2023, TradeLenda works with 1,000 SMEs in various African countries.
By Pranav Agarwal, Research Associate
Sources and Additional Resources
Business Day article on Baobab+ and TradeLenda
https://businessday.ng/news/article/hope-rises-for-smes-as-baobabplus-tradelenda-offer-solar-solutions/
MSME Africa article on Baobab+ and TradeLenda
https://msmeafricaonline.com/baobabplus-and-trade-lenda-team-up-to-bring-affordable-solar-solutions-for-smes/
Baobab+ homepage
https://baobabplus.com
Baobab Group homepage
https://baobab.com/
Baobab Group impact report
https://baobab.com/wp-content/uploads/2023/08/2022-Impact-Report.pdf
TradeLenda homepage
https://tradelenda.com/
Previous MicroCapital article on Baobab+
https://www.microcapital.org/microcapital-brief-baobab-borrows-1-3m-from-oikocredit-to-boost-household-access-to-technology-solar-energy-in-rural-cote-divoire/
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