In 2016, CDC invested $11.6 million of equity in M-KOPA, with a subsequent follow-on round of $7 million in November 2017.
In 2017 CDC also provided $20 million of debt financing (equivalent amounts in Kenyan and Ugandan shillings), as part of a $55 million local currency facility alongside Stanbic, FMO and Norfund. This was a landmark deal in the off-grid energy sector, being the largest commercial local currency debt facility to date for a pay-as-you-go company.
Our investments will allow M-KOPA to install solar home systems in a further one million homes.
M-Kopa provides flexible repayment options via an appropriate financial PAYGo product, which enables access to clean energy and appliances. It also helps establish credit histories which can improve access to finance.
Kenya and Uganda
Poor, low-income and middle-income (largely rural customers, 80% of current (solar) customers earn below $500 per month).
Kenya and Uganda
Poor, low-income and middle-income (30% are new smartphone users earning c.$150 per month, corresponding to bottom c.40%) and 70% are existing smartphone users, earning c. $400 per month.
To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.
Relates to the ability of the to successfully scale beyond Kenya, particularly in Nigeria and Uganda.
Environmental and social aspects
M-Kopa has put in place a robust system for managing environmental and social issues. The current focus of the CDC ESG-I team is on value add initiatives, including improvements in the management of electronic waste.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Africa, East Africa
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Equity, Direct Debt
- Start date
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- September 2016
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.