A project led by TFE Energy’s Africa
TFE leverages data, digital technologies, analytics and on-ground experience to shape the future of energy in sub-Saharan Africa and South Asia.
Headquartered in Cape Town, we bring a combined 30 years of practical experience in designing and delivering innovative mini grid, off-grid solar, captive power and electric mobility delivery- and financial models, electrification strategies, policy advisory, market intelligence and investment advisory in the challenging context of frontier markets.
"We will be able to gather data on the efficacy of this finance model and hopefully with it, unlock huge amounts of commercial finance that could unleash Africa's superpowers." (Doctor Sam Duby, CEO of the Future of Energy in Africa.)
Context
In many parts of Africa, an affordability gap forces people to pay for energy in small increments, often through mobile payments and Paygo systems. This process generates a significant amount of untapped data.
At the same time, there is a severe lack of affordable working capital for small companies providing essential services, like energy. International investors are eager to invest in Africa, but traditional mechanisms are not designed to cater to the scaling needs of small businesses.
This situation creates a large gap between the financial needs of these companies and the resources available to help them grow.
Objectives
Assess energy service company revenues, derisk and size loans for small energy companies, and enable access to working capital for faster scaling.
Collaborate with African data analytics and risk assessment firms to validate this financial model and bridge the gap between investors and small essential service providers.
Activities
Halo uses this data to analyse the revenues of these energy services companies and derisk and size loans so they can grow their business faster.
Impacts
Help international investors overcome barriers to investing in Africa, creating a more inclusive financial ecosystem.
Unlock significant amounts of commercial finance, driving economic growth and innovation in the energy sector.
Set the foundation for a revolutionary finance model that could be replicated across other sectors in Africa.
