Yellow, the African fintech startup that provides pay-as-you-go off-grid solar solutions and appliances, announced that it received a $5 million investment from a social impact investor Oikocredit, which will allow them to reach an additional 89,000 households in sub-Saharan Africa that lack access to essential energy services.
Yellow, established by tech entrepreneur Michael Heyink, has provided services to over 350,000 clients across four nations. With the backing of Oikocredit, Yellow aims to empower low-income communities in Malawi, Rwanda, Uganda, and Zambia by offering them access to clean energy and a path to owning off-grid solar products that can be scaled up to meet their increasing energy demands.
Heyink asserts that renewable electricity access can aid households in elevating their quality of life, augmenting their income and leading to a more dignified existence. The International Renewable Energy Agency (IREA) disclosed that Africa possesses substantial wind, solar, hydro, and geothermal energy potential. As the costs of renewables are falling, they are becoming more accessible. IREA also highlighted that Central and Southern Africa have an abundance of minerals needed for the manufacture of batteries, wind turbines, and other low-carbon technologies.
Since its establishment in 2018, Yellow has been a trailblazer providing solar energy solutions to low-income communities. To date, Yellow has sold over 300,000 energy devices, improving the lives of over 1.5 million individuals through clean energy access. Additionally, Yellow has created meaningful economic opportunities for more than 1,200 persons by employing them as agents.
We are delighted to be partnering with Oikocredit on this transformational facility. This loan will enable us to access local currency funding in multiple jurisdictions, providing our business with greater scope to serve more customers better.
Michael Heyink
So far, Yellow’s solar home systems have helped avoid approximately 442,671 metric tonnes of CO2 equivalent by replacing the usage of kerosene lanterns and diesel generators.
We’re very pleased to support Yellow, one of the fastest-growing companies in the industry, in its expansion to provide greater access to energy across Africa. With this investment, we continue our commitment to achieving higher social impact in sub-Saharan Africa through investments in renewable energy. Our partnership with Yellow will enable the company to increase its social impact by helping low-income people become healthier, improve their livelihoods and be better connected.
Siebren Wilschut – investment officer at Oikocredit
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