TDB GROUP EXTENDS USD 2 MILLION TO MPOWER VENTURES ZAMBIA TO IMPROVE ACCESS TO AFFORDABLE AND MODERN ENERGY SOLUTIONS IN ZAMBIA
Media Contacts:
Anne-Marie Iskandar
Senior Communications Officer
Corporate Affairs and Investor Relations
Trade and Development Bank
Anne-Marie.Iskandar@tdbgroup.org
Chelsea Musenge
Executive Support Grants and Communications
MPower Ventures
chelsea@mpower.africa
Lusaka, March 4th, 2024 – The Eastern and Southern African Trade and Development Bank Group (TDB Group), through the Trade and Development Fund (TDF), has extended a 3-year USD 2 million term loan to MPower Ventures Zambia Limited to improve access to modern and affordable energy solutions for household and productive use through the importation and retail of solar products to off grid communities in Zambia.
Through this transaction, MPower Zambia is set to increase its deployment range of plug and play household solar devices and market driven productive use assets such as freezers, sewing machines and water pumps to lower- and middle-income households, SMEs, and farmers in peri-urban and rural areas.
Gloria Mamba, Trade and Development Fund Executive Director and TDB Southern Africa Coverage Executive said, “We are pleased to extend this facility to MPower as it allows us to provide concessional financial solutions to SMEs which have traditionally struggled to attract adequate financing from the formal banking sector, yet spur change and transformation within our communities, bringing about green growth opportunities and sustainable development, which is what we desire to see across the region.”
Additionally, MPower Zambia will construct 50 new rural energy hubs. Using the energy hub model the company sets up hubs that allow communities to access energy for domestic and public purposes such as lighting health centres through last mile extension of power from the hubs to the nearest health facilities. The energy hubs are expected to create 30 direct and over 500 indirect jobs, thereby enhancing productivity and economic activity, and improving the livelihoods of communities that currently lack access to the electricity grid.
Prof. Oliver Saasa, Chairperson and Non-Executive Director of the Trade and Development Fund Board of Directors said that “The Rural Electrification Master Plan for Zambia aims to achieve a rural electrification rate of 51% by 2030. The Government is implementing a strategy to encourage private sector investment to bring in additional energy solutions such as solar to bridge the energy gap.”
Manuel Seiffe, CEO and Co-Founder of MPower, commented:
“We are immensely grateful for the support extended by the TDB Group through the Trade and Development Fund. This 3-year USD 2 million term loan marks significant progress for MPower as we strive to enhance access to clean, reliable and affordable energy solutions in Zambia. With this funding, we are better positioned to expand our reach and deploy household solar devices and market-driven productive assets to empower lower- and middle-income households, SMEs, and farmers in peri-urban and rural areas. Large parts of Zambia and Africa still suffer from non-existent or unreliable power supply. MPower allows for leapfrogging straight to solar energy and we are grateful for TDF’s support in achieving our mission.”
Michael Eschmann, COO and Co-Founder, and Greg Nau, CFO and Co-Founder, stressed “that the construction of 50 new rural energy hubs underscores our commitment to sustainable development, creating jobs, and improving livelihoods within communities that lack access to the electricity grid. Together with partners like the TDB Group, we are driving change and promoting green growth opportunities across the region.”
The facility was signed during a breakfast meeting at the Intercontinental, Lusaka in the presence of Noel Nkoma, Council of Ministers, Ministry of Finance and National Planning, Winza Muzyamba Mwauluka, Director – Project Implementation and Monitoring, State House, Subeta Mutelo, Permanent Secretary of Energy and SMEs, Johannes Hertlein, Country Director MPower Zambia and various CEOs, who deliberated during a panel session on opportunities for financing renewable energy in Zambia.
TDB Group is committed to supporting its member states achieve their national priorities by providing innovative financing solutions in critical sectors that promote sustainable development.
About TDB Group
Established in 1985, the Eastern and Southern African Trade and Development Bank (TDB) is an investment-grade African regional development finance group, with the mandate to finance and foster trade, regional economic integration and sustainable development. With an asset base of USD 10 bn, TDB Group has 25 African member states, which alongside non-regional member countries and institutional investors from Africa, Europe and Asia, form TDB’s community of shareholders.
The Trade and Development Fund is TDB Group’s concessional and grant window. Working with diverse partners, it provides innovative alternative financing solutions to clients in TDB Group member states including term loans, lines of credit, guarantees and grants. Its facilities are often blended with non-repayable technical assistance grants to address specific institutional and enterprise challenges.
TDF’s technical assistance initiatives comprise among others business linkages, project advisory and project development support across key sectors for public and private sector clients, including MSMEs. In addition to financing and technical assistance, TDF also offers program management services.
TDB Group counts several subsidiaries and strategic business units including the Trade and Development Bank (TDB), TDB Group Asset Management (TAM), the Trade and Development Fund (TDF), TDB Captive Insurance Company (TCI), the ESATAL fund management company and TDB Academy.
www.tdbgroup.org
About MPower Ventures Zambia Limited
MPower Ventures, a venture backed climate fintech and impact venture, is revolutionizing access to affordable solar solutions across Sub-Saharan Africa. With a steadfast commitment to clean energy and financial inclusion, MPower leverages an innovative B2B2C model to partner with local distributors to deliver high quality on-grid and off grid solar solutions. MPower caters to households, SMEs, small Commercial & Industrial (C&I) clients and the agricultural sector and has distributed over 40’000 units across 7 African countries to date.
MPower’s fusion of finance and technology enables the distribution of top-tier clean energy products. By partnering with financial institutions and corporate entities, the company ensures access to financing for end customers, reducing market and credit risks.
www.mpower.africa
