Easy Solar funded by the Mastercard Foundation
On Wednesday the 16th of May, our client Easy Solar (SL) Limited signed a funding agreement with MasterCard Foundation Fund for Rural Prosperity in Nairobi, facilitated and witnessed by our colleague Krisje.
Pay-As-You-Go (PAYG) is used to finance solar products to off-grid customers, giving them immediate access to basic electricity. However, ‘classic’ PAYG is not working well in rural Sierra Leone, where high down-payment on products exclude poor consumer segments and limited mobile money penetration makes collection payments from remote and dispersed customers very costly. Easy Solar has an innovative solution to finance previously unbankable customers. The company uses the sale of an entry-level solar lamp on a rent-to-own payment plan to build customer relations and density. Lamp repayment history allows for credit scoring and deep customer knowledge before selling higher value solar and other life-changing products on terms affordable to BoP customers. By clustering customers, merging cash collection with stock delivery routes and deploying community-based agents, Easy Solar minimizes transaction costs, while partnering with Airtel to integrate fintech in its solution.
For more information on the project, please refer to the project description on our website.