The landlocked African country of Zambia is to get “pay to own solar homes”.
Around 15 million Zambians live without access to the electrical grid, representing 80 per cent of the total population and 95 percent of rural residents.
But now, thanks to a partnership between Africa’s largest telecoms company, MTN, and energy and financial services firm Fenix International they will now be able to access off-gird power.
The Swedish Embassy in Zambia is committing nearly $3m (SEK 24,750,000) to Fenix in Zambia between now and 2020, with USAID contributing an additional $750,000 to the company.
The launch in Zambia represents the first step in Fenix’s expansion across Africa with their flagship product, ReadyPay Power, which provides off-grid customers access to ultra-affordable solar power.
Fenix will extend its own proven model for making solar power accessible and affordable, which has doubled the company’s Ugandan customer base in just 12 months.
With backing from the Swedish Embassy and USAID, Fenix expects to reach 850,000 rural Zambians by 2020.
ReadyPay Power is an expandable solar home system designed to provide power to households and small businesses that the grid has failed to reach.
Customers make instalments of as little as $0.20 per day via MTN Mobile Money until they have paid in full. Fenix uses these continuous micro-payments to generate a credit score, enabling customers to access additional system upgrades or financial services.
Lyndsay Handler, chief executive of Fenix International, said: “Over 90 per cent of rural Zambians lack access to electricity and have no options other than dangerous candles and kerosene lanterns to light their homes.
“This is the harsh reality of the situation which we are working to change. Our solar home systems not only provide light and energy, but our unique Fenix credit score makes upgrades and additional life-changing products accessible to committed customers as their needs and incomes grow.
“Ten years from now, we hope to eliminate the use of candles and be an important part of our customers’ lives across Zambia.”
Wane Ngambi, Head of Mobile Financial Services, MTN Zambia, adds: “The transformative relationship between MTN Mobile Money and off-grid energy has been an exceptional revelation.
“MTN Mobile Money now sits at the heart of many households, who use these simple and secure services daily to light up their lives. For us, this is all part of the mission to create mobile solutions which make a difference.”
Funding from the Embassy of Sweden in Lusaka is provided as part of the Power Africa: Beyond the Grid Fund Zambia (BGFZ) initiative. This is managed by REEEP (the Renewable Energy and Energy Efficiency Partnership).
BGFZ aims to bring basic clean energy access to 1 million Zambians and accelerate private sector growth in clean energy generation and distribution in the country.
USAID’s additional $750,000 support is provided as part of its Scaling Off-Grid Energy: Grand Challenge for Development, which aims to create up to 20million new connections in off-grid communities across Africa.
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