Oikocredit, a Netherlands-based cooperative, recently lent USD 5 million to Yellow, a Uganda-based supplier of pay-as-you-go solar electricity products and systems, to expand its operations in sub-Saharan Africa. Pay-as-you-go services are those that can be enabled and disabled remotely as customers choose to pay for their use.
Yellow Founder Michael Heyink, commented, “This loan will enable us to access local-currency funding in multiple jurisdictions, providing our business with greater scope to serve more customers and better.”
Yellow was established in 2018 and offers services such as off-grid solar power systems, credit management and customer feedback mechanisms for households in Malawi, Rwanda, Uganda and Zambia. The firm serves 1.5 million people via 1,200 agents.
Founded in 1975, Oikocredit invests debt and equity in financial inclusion, agriculture and renewable energy in Africa, Asia and Latin America, seeking “to improve the quality of life of low-income people or communities in a sustainable way.” As of June 2022, Oikocredit reported investments valued at EUR 1 billion (USD 1.1 billion), deployed via 500 partners.
By Vaughn Rajah, Research Associate
Sources and Additional Resources
Oikocredit press release
https://www.oikocredit.coop/k/en/n2613/news/view/356930/9049/oikocredit-invests-us-5-million-in-yellow-to-support-growth-of-solar-energy-in-africa.html
Yellow homepage
https://www.yellow.africa
Oikocredit homepage
https://www.oikocredit.coop
Oikocredit financials
https://www.oikocredit.coop/en/publications/annual-reports
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