IFC mulls debt investment in M-KOPA

Image Credit: M-KOPA

The International Finance Corporation is considering a potential debt investment in M-KOPA to support the expansion of its pay-as-you-go business in Kenya and Uganda. If it gets approved, the development finance institution will lend M-KOPA Kenya as much as $50 million and M-KOPA Uganda as much as $15 million. Each of these debt investments would be structured as senior secured loans, and would be supported by the IDA19 IFC-MIGA Private Sector Window Local Currency Facility.

Since its launch, M-KOPA has provided more than $600 million in credit to over 2 million customers across Kenya, Uganda, Nigeria, and Ghana. Customers use the credit to buy smartphones, solar home systems, or take out cash loans, repaying them digitally with micropayments. This round of debt financing is part of a $180 million capital raise targeted by M-KOPA as it looks to scale its operations.

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