FMO considers expansion of financing facility for M-KOPA

FMO is evaluating an investment proposal to expand the receivables financing facility to off-grid solar power provider M-KOPA that was initially provided in 2017 by another $3 million. The credit line will allow the company to continue its growth consistently, accessing credit to support its own customer financing activities in periods when cashflow generated receivables is slow. Should the investment be approved, the amount of financing made available by FMO to M-KOPA via the facility would total almost $15 million.

Founded in 2010, M-KOPA is one of the higher-profile companies jostling for a share of the continent’s promising off-grid solar power market. To date, the company has provided over 1 million low-income customers in Kenya, Uganda, and Tanzania with access to electricity generated by solar power, enabling them to have access to products and services they’d be unable to afford on a cash basis.  Since it began operations, M-KOPA has provided over $400 million in solar home system financing to the East African market.

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