Africa is grappling with poor electricity supply that has greatly stymied its economic development for years. Except for a few countries, the whole continent is bedeviled with epileptic power supply dragging businesses, especially SMEs down.
In West and Central Africa, only three countries are on track to give every one of their people access to electricity by 2030, according to World Bank data. This means, 263 million people in the region will be left without electricity in ten years. West Africa has one of the lowest rates of electricity access in the world; only about 42% of the total population, and 8% of rural residents, have access to electricity, the World Bank said.
To fill its electricity gap, African countries have been exploring solar-powered technology as an alternative to the grid, creating an emerging market filled with solar-power startups that are increasingly attracting millions of dollars in investment.
Tekedia Mini-MBA edition 16 (Feb 10 – May 3, 2025) opens registrations; register today for early bird discounts.
Tekedia AI in Business Masterclass opens registrations here.
Join Tekedia Capital Syndicate and invest in Africa’s finest startups here.
Kenya and Canadian-based cleantech startup Solar Panda has secured $8 million in a Series A funding round led by Oikocredit and the EU-funded Electrification Financing Initiative.
“We are excited to partner with leading global impact investors Oikocredit and Electrifi and thankful that this funding will help us accelerate our mission of improving lives,” said Andy Keith, founder, and CEO of Solar Panda. “I’m very proud of the growth and success our team has been able to achieve over the past 4 years and, with nearly 1 billion people in the world without access to electricity, we feel we are just getting started. Seeing signs of pandemic recovery and a return to profitability, we will use the strength from our Series A raise to start work on our Series B round, which will be focused on international expansion. We are grateful to have ElectriFI and Oikocredit joining the team and look forward to working with them to take Solar Panda to the next level.”
Solar Panda sells Solar Home Systems through its own network of 37 storefronts and 1000 sales agents across Kenya, Solar Panda, a 2017 startup, provides Solar Home Systems, which include lighting, mobile charging, radios, and televisions.
Solar Panda designs, manufactures and sells pay-as-you-go (PAYGo) solar home systems in Kenya. With focus on rural areas, the Systems are subsidized to make them affordable for the underserved, thereby improving different facets of their lives, such as lowering the need for risky kerosene lanterns, saving families’ money, fostering education, and allowing higher productivity.
In about five years of its existence, the startup has recorded significant growth. Solar Panda is already operational in more than 200,000 houses in Kenya, and hopes to provide over 1 million Kenyans with clean, inexpensive electricity in the near future.
The firm said it will use this funding to offer more products, reach more people in Kenya, and establish the framework for future expansion into Sub-Saharan Africa and Kenya.
Oikocredit said it is thrilled to partner with Solar Panda.
“In a short period of time, Solar Panda has demonstrated its capabilities in designing and selling quality solar home systems needed by many households across Kenya. We are happy with the strong local talent they have assembled and are certain they can continue delivering positive results. As an equity investor in a partner like Solar Panda, we will collaborate and continue directing our efforts to make clean energy accessible and improving the quality of life of thousands more households for the communities we serve.”
Having seen evidence of recovery from the pandemic and a clear path to growth, Keith said the business will take the strength from its Series A round to begin work on its Series B financing, which will be focused on worldwide expansion.
“We are extremely delighted to become a shareholder of Solar Panda. The company has displayed impressive growth over the last years and demonstrated strong resilience amid COVID. Through this co-investment with Oikocredit, we aim at supporting the company in its next stage of development and realizing its full potential,” Lionel Dieu, ElectriFI Senior Investment Officer at EDFI Management Company, said.