ZOLA Electric, Tanzania
ZOLA Electric is the leading distributed renewable energy provider in Tanzania and operates across East and West Africa in Rwanda, Ghana, Cote d’Ivoire and Nigeria. ZOLA provides more than one million customers with access to energy each day and employs more than 1,000 people across Africa.
FMO invested USD 17.5 mln in ZOLA Electric (USD 5 mln from AEF, USD 12.5 mln from FMO) and mobilised an additional USD 15 mln from Symbiotics. FMO’s share in this investment is expected to create 1,089 new jobs, connect 78,360 new households to electricity and yield a GHG emission reduction of 36,476 tons of CO2 equivalent.
In addition to this investment, FMO is also providing technical assistance by funding the development of a new credit scoring methodology through the Frankfurt School of Management. This method will significantly improve ZOLA Electric’s ability to assess the risk of extending credit to new customers.