In West Africa, the rate of access to electricity is 52% on average, with power cuts of up to 80 hours per month, according to the 2018 report from the World Bank. Daystar Power, a Nigerian supplier of solar off-grids, has since helped, like other companies, to fill this gap. To increase the distribution of its solution in households in West Africa, the company recently carried out a financial mobilization which raised 38 million dollars.
This funding round was initiated by the Investment Fund for Developing Countries (IFU), a Danish development bank with the support of STOA, a French impact fund and Morgan Stanley Investment Management. With these funds, Daystar Power intends to expand its portfolio of projects in Nigeria and Ghana. The company intends to establish itself in three other countries, in particular Côte d’Ivoire, Senegal and Togo. “We will replace overpriced and polluting diesel generators with our reliable and cleaner solar power solution. Thus, our installed capacity will increase by 77 MW, which will make a total of 100 MW, against 23 MW currently ”, says Jasper Graf von Hardenberg, CEO and co-founder of Daystar Power.
By counting the previous round table (in 2019) from Persistent Energy Capital LLC, a New York-based venture capital firm in the United States, and Verod Capital Management, an investment fund based in Nigeria, the amount of capital investment already received by Daystar Power is worth $ 48 million.
SunFunder also supports Daystar Power. In February 2020, the finance company, specializing in solar energy, invested $ 4 million in the Nigerian company for the production of 3 MWp of electricity in Nigeria. According to SunFunder, this investment will allow this West African country to avoid 100,000 tonnes of CO emissions2.