OPIC Partners with Lumos to Power Nigerian Homes and Businesses
October 21, 2015
(OPIC)
WASHINGTON – The Overseas Private Investment Corporation (OPIC), the U.S.
Government’s Development Finance Institution, today signed an agreement
recognizing a $15 million commitment by OPIC to finance Txtlight Power
Solutions, Ltd. doing business as Nova-Lumos (Lumos), an off-grid electricity
provider, to scale up a business that provides solar electricity to homes and
small business throughout Nigeria. The signing was part of Secretary John
Kerry’s Climate and Clean Energy Investment Forum.
“We are very excited about this major financing milestone in partnership with
OPIC, which will enable us to accelerate our growth in Nigeria and improve the
lives of millions,” said David Vortman, CEO and Co-Founder at Lumos. “Having the
backing of an institution such as OPIC provides a vote of confidence in Lumos’
innovative core technology and our unique business model that drives most of our
value as a company,” he added. “We look forward to expanding our relationship
with OPIC as we grow in Nigeria and other territories.”
“Lumos brings vision, innovation, and sound business sense to address the power
access challenge in Africa,” said Elizabeth Littlefield, OPIC’s President and
CEO. “With a dedication to those who live off-grid or have unreliable power
access, Lumos’ creative business model will positively impact millions with new
affordable electricity access in homes, businesses, medical facilities, and
schools.”
With this OPIC financing, Lumos will be able to increase power access to the
nearly 90 million Nigerians who currently live without connection to the
electric grid. The Lumos service includes a home solar panel linked to an indoor
storage and connection unit that allows customers to access significant amounts
of power on-demand, day or night. The affordable Lumos service allows customers
to utilize a “pay-as-you-go” model, in small amounts, by text message.
Lumos’ business model is highly scalable in large part due to the company’s
partnerships with incumbent mobile operators. In Nigeria, Lumos has partnered
with MTN, Nigeria largest telecommunications company with over 60 million
subscribers base.
This is the largest OPIC investment to the off-grid power sector in Africa, a
key component of increasing energy access in a region where people are not
grid-connected and the need for reliable power is especially acute.
Lumos was also a recipient of early-stage catalytic funding through OPIC and the
Africa Clean Energy Finance initiative (ACEF), a partnership with the U.S. State
Dept. that provided crucial start-up capital for 30 innovative clean energy
projects across 10 African countries, designed to help projects to progress to a
financially viable stage. OPIC’s financing to Lumos proves the catalytic model
of this program.
Lumos recently became an official private sector partner of President Obama’s
Power Africa initiative, a partnership among more than 100 public and private
sector partners to bring new power access to the more than 600 million
Sub-Saharan Africans that currently live without electricity. And as a key part
of Power Africa, OPIC financing allows private companies like Lumos to scale up
business models and broadly increase new power access across Africa.
Lonomics, a New York City based impact investments firm served as the
transaction advisor to Lumos.
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