A pan-African energy company, Baobab+, has closed a €10 million investment from Norfund to fund electrification and digitalization projects in numerous African countries.
This round of funding will allow the firm to grow its market and network while it develops new markets across sub-Saharan Africa.
Founded by Alexandre Costner in 2015 under Microcred Group, Baobab+ is a digital finance startup focused on financial inclusion in Africa and China with the sole aim of distributing new non-financial items that would improve and transform the lives of Africans in order to promote long-term economic development.
How it operates
Baobab+ is expanding energy availability in West Africa (Senegal, Ivory Coast, Mali) and Madagascar, using traditional loans for Microcred consumers or a Pay-As-You-Go (PAYG) model to make solar goods more affordable to everyone.
Another operation of the firm is to provide people living off the grid with clean, inexpensive, and reliable energy by providing them with high-quality goods and customized finance solutions. Baobab+ collaborates with a variety of partners who are interested in improving the countries’ social and environmental benefits.
The growth and impact of Baobab+ in Africa
Baobab+ has outfitted 220,000 families and served over 1,200,000 clients in four countries: Mali, Ivory Coast, Senegal, and Madagascar during the previous five years.
Despite the Coronavirus outbreak, Baobab+’s company has grown at a 60% annual rate as of August 2021. Norfund’s decision to invest €10 million in the largest solar home system provider in West Africa and Madagascar.
Also, throughout West Africa and Madagascar, the company is the first to offer this type of smartphone payment option. To do so, the firm is supported by its subsidiary, the Baobab microfinance group, a major player in Africa’s access to financial inclusion, in collaboration with the Samsung group for the installation of a remote digital system to secure the services offered, and by various startups in the areas where the company is located.
Through these funds, Baobab+ will be able to extend its operations in Southern Africa, with the goal of helping one million homes over the next five years. The funds will also help the company expand its operations in the Democratic Republic of Congo (DRC) and Nigeria. Areas with limited or no access to energy and digital technology are considered.
“Africa will go through a never-before-seen transformation. Baobab+ aims to be a part of this future revolution by energizing and digitizing Africa’s rural world,” said Costner.
