- French start-up Qotto is getting support from the Off-Grid Energy Access Fund of the Energy Inclusion Facility (EIF OGEF)
- The U.S. government’s Millennium Challenge Corporation will also provide a $1.8 million grant through its Off-Grid Clean Energy Facility for Benin.
- The funds will enable Qotto to mobilise the €6 million needed to distribute its solar kits in West Africa.
French start-up Qotto is getting support from the Off-Grid Energy Access Fund of the Energy Inclusion Facility (EIF OGEF). The facility provides loan financing to support the growth of off-grid energy companies. The fund which Lion’s Head Global Partners manage (LHGP) draws on the Energy Inclusion Facility (EIF), a debt financing facility for small-scale electricity access projects funded by the African Development Bank (AfDB), development finance institutions and commercial investors.
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The EIF OGEF will provide Qotto with €2 million in financing. This will enable the company to expand the provision of solar home systems kits in Benin and Burkina Faso. The funds were raised from the Africa Enterprise Challenge Fund ($700,000) for Burkina Faso. The U.S. government’s Millennium Challenge Corporation will also provide a $1.8 million grant through its Off-Grid Clean Energy Facility for Benin.
According to Jean-Baptiste Lenoir, co-founder and president of Qotto, this financing is very innovative in its structure, reinforcing the risk assessment by analysing the future revenues contracted; it shows that financial tools can be used for a positive social and ecological impact.
This EIF OGEF’s contribution will enable Qotto to mobilise the €6 million needed for distributing its solar kits in West Africa. The company expects to obtain the remaining funds from business angels and individuals.