PRESS RELEASE
EDFI ElectriFI invests USD 5m in Nithio FI to scale energy access in Africa
Brussels/ Washington 31.3.2021 Nithio Holdings is an AI-enabled energy financing platform whose mission is to standardize credit risk assessments and therefore drive more capital to the sector, including by investing directly and efficiently in energy companies—including solar home systems, mini-grids, productive use, appliances, and microfinance. Nithio’s Financial Intermediary, Nithio FI, leverages this data-driven approach to invest in growth African markets, initially Nigeria, Uganda, and Kenya. ElectriFi, an impact-investment facility funded by the EU supports this ambitious project with an up to USD 5m equity investment.
By 2030, 9 out of 10 people living without electricity globally will be in Sub-Saharan-Africa. In order to achieve universal energy access by 2030, more off-grid energy companies must receive investment and scale significantly. However, capital flow is stagnant as operators are not able to quantify end-users’ ability to pay. Investors are therefore unable to forecast cash flows due to the variance in PAYGo repayment trajectories. This creates a bottleneck in funding and growth. Nithio FI’s innovative approach will expand access to off-grid clean energy for households, micro businesses, and smallholder farmers.
Ensure that no one is left behind. Nithio FI’s approach enables ‘precision financing’, making it possible to both crowd-in private capital and reach the last mile, as Hela Cheikhrouhou, Co-Founder and CEO of Nithio Holdings, explains:
“Nithio’s AI-enabled models improve the understanding of repayment patterns across different end users, including households, micro-enterprises and smallholder farmers – ensuring that investors and grant providers can match the right capital to the right customer. At one end of the spectrum, there are households with a consistent ability to pay, where commercial financing is a viable option. Nithio works with operators and investors to reach these customers. However, there are households that will need additional support to afford even the most basic system. By identifying where grant capital is most needed, we promote the efficient use of resources and ensure that no one is left behind. And we are delighted to work with ElectriFI to ensure both of these important objectives are met.”
EDFI ElectriFi’s USD 5m investment in Nithio FI will enable it to continue to support well-established distributors as well as drive capital to smaller local distributors in order to scale the market.
“This investment is an excellent opportunity for ElectriFI to partner with a strong team of professionals that has a unique knowledge of the off-grid energy in Sub-Saharan Africa and that is using the most advanced analysis tools for the benefits of the electrification in Nigeria, Uganda and Kenya”, says Dominiek Deconinck, Chief Investment Officer at EDFI Management Company, which manages EDFI ElectriFI.
Nithio’s AI-enabled risk analytics engine -Nithio’s innovative platform is powered by its AI risk analytics engine. Leveraging geospatial household characteristics data in conjunction with customer repayment data, Nithio is able to accurately forecast repayment rates and cash flows. This informs investors’, including Nithio FI, due diligence process with standardized credit assessment and portfolio monitoring.
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About Nithio FI: Nithio FI B.V. is a Financial Intermediary that offers receivables-backed financing to off-grid energy providers in Nigeria, Uganda and Kenya. Nithio FI is part of Nithio Holdings, which was established in 2018 with a goal of using its AI risk analytics engine to unlock financing for energy access at scale. www.nithio.com
About EDFI ElectriFI: EDFI ElectriFI (“ElectriFI”) is an EU-funded impact investment facility, financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets. EDFI ElectriFI is managed by the EDFI Management Company, a company established by the 15 European Development Finance Institutions (DFIs). It benefits from additional support from Power Africa (targeted at sub-Saharan Africa), Sweden and Italy. www.electrifi.eu
Press Contacts:
Grace Fenton ([email protected])
Jean-Denis Collin – Co-Fund Manager of EDF ElectriFI ([email protected])
