ImpactAlpha, July 27 – Tanzania-based Zola Electric (formerly Off Grid Electric) secured $5 million from solar-business lender SunFunder, while an unnamed family office committed $15 million. Zola will use the funds to deliver off-grid energy to 25,000 new customers and improve energy access for 500,000 households by 2021.
Zola launched in 2011 as Off Grid Electric to connect millions of energy poor households to low-cost, renewable power. It has since raised more than $200 million in debt and equity funding. It serves more than 180,000 households and businesses in Tanzania, Rwanda, Côte d’Ivoire and Ghana.
Zola’s latest debt funding is the third debt agreement with SunFunder since SunFunder launched in 2012. The lender is among several investors that have developed a dedicated investment business in solar companies. SunFunder has also recently originated loans to PEG Africa and Greenlight Planet.