ElectriFI Expands Investment in Sotho Minigrid Portfolio to Accelerate Rural Electrification in Lesotho
Maseru, Lesotho & Brussels, Belgium – 19 September, 2024 – The EU-funded ElectriFI, managed by EDFI Management Company (EDFI MC), today announced a new LSL 40 million investment in Sotho Minigrid Portfolio, a project company set up for the deployment of mini grids in 11 concession areas in rural Lesotho. This project is developed, built and operated by OnePower Lesotho, a social enterprise dedicated to bringing affordable and reliable electricity to rural communities in Lesotho. This follow-on investment will enable the project company to expand and complete the distribution network for its portfolio of solar-battery mini grids, providing first-time access to electricity to more than 9,100 households (c. 32.800 beneficiaries), 68 schools, 20 clinics, and 470 SMEs across rural Lesotho. 7 health clinics have also been connected.
ElectriFI’s relationship with OnePower began in 2018 with a EUR 100,000 development finance loan to study the feasibility of bringing electricity to 25 off-grid villages in Lesotho. OnePower’s unique approach, combining an optimized design process and low cost of capital, allows the company to provide electricity at affordable rates to families, schools, health clinics, and local businesses in these communities.
In December 2021, ElectriFI and the UK-funded Renewable Energy Performance Platform (REPP) jointly invested LSL 120 million in Sotho Minigrid Portfolio. This project-financed vehicle funded the construction of 11 mini grids with a total capacity of 1.8 MW that would deliver first-time access to 20,000 beneficiaries.
With the new LSL 40 million investment, the company will expand the scope of the project and complete a network of over 1,000 km, overcoming the challenges posed by Lesotho’s mountainous terrain, where over 80% of the country lies above 1,800 meters. The company will continue to deploy innovative technologies like PV trackers, smart meters, and modular powerhouses to ensure efficient construction and operation.
“We are deepening our partnership with OnePower and supporting their mission to bring clean, reliable electricity to rural Lesotho,” said Rodrigo Madrazo, Chief executive officer at EDFI Management Company, “as we are aware that this investment will have a transformative impact on thousands of lives, enabling economic growth, improved education and healthcare, and a better quality of life for communities that have long been underserved.”
OnePower’s CEO, Matt Orosz, expressed his gratitude for ElectriFI’s continued support, stating, “ElectriFI’s confidence in our team and model has been instrumental in our success so far. This new investment will allow us to reach even more people with the life-changing benefits of clean and reliable electricity, and we look forward to working closely with ElectriFI to make that vision a reality.”
Lesotho, a landlocked country surrounded by South Africa, has one of the lowest electrification rates in Africa, with about 62% of the population lacking access to electricity and a rural electrification rate estimated at below 20%. By leveraging innovative technologies and a community-focused approach, OnePower is creating a sustainable model for rural electrification that can be replicated across Africa and beyond.
About EDFI Management Company
EDFI Management Company (EDFI MC) is a multilaterally owned impact asset manager which delivers innovative development finance solutions that enable European DFIs, development banks and private sector investors to increase the scale and impact of their work. The company focuses on business models, technologies and geographies where other investors have not been able to operate at the desired scale given their resources and investment criteria. For more information, visit www.edfimc.eu.
About ElectriFI
The Electrification Financing Initiative – ElectriFI, managed by EDFI Management Company, is an impact-first investment facility, funded by the European Union, USAID’s Power Africa programme, the Government of Sweden and the Government of Italy. ElectriFI is investing in early-stage private companies and projects that increase or improve access to and supply of sustainable energy in developing countries. For more information, visit www.electrifi.eu.
About OnePower
OnePower Africa is a fast-growing startup operating in Lesotho and Benin with the mission to bring electricity to underserved communities in developing countries. They provide affordable and reliable electricity services to off-grid villages, giving families, schools, health clinics, and local businesses the opportunity to thrive. For more information, visit www.1pwrafrica.com.
Media inquiries
For EDFI Management Company: Natasa Lakovic, n.lakovic@edfimc.eu
For OnePower: Dr. Matthew S. Orosz mso@1pwrafrica.com
