- EDFI ElectriFI, an initiative of the European Union (EU), provides RDG Collective with $2 million.
- The Lusaka-based company distributes solar home systems for household electrification.
The European Union (EU) Electrification Finance Initiative (EDFI ElectriFI) invests in Zambia. The project is funded with $2 million for RDG Collective, a solar home systems provider based in Lusaka, Zambia, to boost RDG’s operations as it continues to grow following its launch in 2018.
The company, run by Rune Gunnar Dige, builds solar home systems for household electrification in rural Zambia. The company’s business plan was centred on the pay-as-you-go business model popular in the African solar home systems market to overcome the financial barrier. The EDFI’s specialized Zambia window, supported by the 11th European Development Fund for Zambia, gave RDG a $2 million convertible (equity) loan.
In close consultation with the local government, the EU representative, and the Common Market for Eastern and Southern Africa, the window was created expressly for Zambia (COMESA). RDG anticipates installing 50,000 solar household systems with EDFI assistance during the following six years, preventing 174,000 tonnes of CO2 equivalent emissions, according to EDFI’s calculations. Over the following six years, the provider of solar home systems hopes to electrify 250,000 people in Zambia, including those who get the OFMFA grant. In addition to electrification, the company will offer solar refrigerators and water pumps to use solar energy efficiently.