MICROCAPITAL BRIEF: Baobab+ Borrows $5.1m from Symbiotics to Boost Solar Electrification in 6 Countries in Africa

Symbiotics, a Switzerland-based investor focused on small businesses in low- and middle- income countries, recently extended a loan of EUR 5 million (USD 5.1 million) to Baobab+, a French energy and technology company, with the objective of increasing electrification rates in Congo, Cote d’Ivoire, Madagascar, Mali, Nigeria and Senegal. Founded in 2015, Baobab+ provides access to solar energy and digital technology with the goal of “electrifying and digitizing rural areas in Africa.” The firm offers solar products and technology – such as tablets for agricultural, healthcare and educational purposes – on a pay-as-you-go model, allowing users to have access to the devices while they make payments toward ownership on their own schedules. As of 2022, Baobab+ has equipped 250,000 households with solar kits and 110,000 with digital products since its inception. The company is a subsidiary of France-based Baobab Group, whose members provide access to finance to 424,000 people in China and eight countries in Africa as of 2022. Among its strategies is to use pay-as-you-go payment histories to establish the creditworthiness of new borrowers.

Founded in 2004, Symbiotics provides for-profit investment intermediary and business services to investors in and practitioners of micro-, small and medium-sized enterprise development as well as lenders to low- and middle-income households in low- and middle-income countries. As of December 2021, Symbiotics reports USD 2.9 billion in assets under management.

By Hasnat Aslam, Research Associate

Sources and Additional Resources

Symbiotics press release
https://symbioticsgroup.com/symbiotics-granted-baobab-eur-5-million-loan-to-expand-electrifications-at-a-larger-scale-in-6-african-countries/

Baobab+ homepage
https://www.baobabplus.com

Baobab Group homepage
https://baobabgroup.com

Symbiotics homepage
https://symbioticsgroup.com

Previous MicroCapital story on Symbiotics
https://www.microcapital.org/microcapital-brief-symbiotics-raising-17m-in-green-bonds-for-sun-king-to-finance-household-solar-technology-in-africa-asia%ef%bf%bc/

Previous MicroCapital story on Baobab+
https://www.microcapital.org/microcapital-brief-baobab-raises-5m-in-equity-debt-to-expand-pay-as-you-go-solar-tablets-in-cote-divoire-senegal/

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