ElectriFI invested a USD 2 million convertible note in RDG Collective, an early-stage Solar Home Systems and Productive Use Appliances provider in rural Zambia.
RDG Collective was established with the ambition to ‘Empower the Future’, by developing and distributing innovative Solar Home Systems (SHS) throughout Zambia where an estimated 2.4 million households still lack access to electricity. While the cost of solar energy solutions remaining prohibitively high for almost all off-grid households, RDG Collective came up with innovative products distributed on a PAY-AS-YOU-GO (PAYG) basis. By eliminating this financial barrier, an increasing number of households across Zambia can now access solar home systems, refrigerators, solar water pumps, and smartphones to improve and empower their lives.
With ElectriFI financing, RDG Collective expects to distribute more than 50,000 new SHS over the next 6 years, resulting in 174k tCO2 emissions avoidance.
EDFI ElectriFi is providing a USD 2m convertible loan to RDG collective to complete the recent fund-raising of the company which successfully secured 2 loans (from Angaza-SIMA and SIMA’s Energy Access Relief Fund) and a grant (from BGFA), with the aim to launch a Series A in the coming 12 to 24 months.
The investment recommendation is supported by its additionality, a realistic business plan, the local footprint of the company, the expected impact and the catalytic impact of ElectriFi’s investment which is required to sustain the development of the business and secure debt investments and a successful Series A.
174k tCO2 emissions avoidance
50,000 new SHS