Mobisol, a Germany-based provider of solar-powered products in Kenya, Rwanda and Tanzania, recently completed a court filing to enter a period of “self-administered insolvency.” According to a press release from the firm, “Mobisol is going to continue serving its customers and partners…without any interruption.” The firm’s managers are working with potential investors as part of a plan to bring in more cash and make Mobisol profitable over time.
The firm provides solar-powered products such as lights and telephone chargers. Customers pay for the products via mobile payments over as many as four years. When a buyer wishes to delay a payment, Mobisol can temporarily disable the device remotely.
Speaking on the challenges Mobisol has faced, its managing director Andrew Goodwin reportedly said, “The view was that we would be able to increase prices over time, which did not turn out to be the case. The second issue is that sales volumes have been affected by the pressure from new competitors.”
Mobisol has served about 85,000 households and microenterprises since it began distributing products in 2013. While its financial figures are private, one estimate places its total equity and debt fundraising at USD 85 million. Its investors included the Finnish government’s Finnfund; the Dutch development bank, which is known by the acronym FMO; the World Bank Group’s International Finance Corporation; and Investec, a firm that was founded in South Africa and manages assets valued at GBP 150 billion (USD 196 billion) as of 2019.
Sources and Additional Resources
Mobisol press release
https://plugintheworld.com/uncategorized/mobisol-gmbh-to-secure-a-sustainable-position-through-restructuring-process/
Financial Times article
https://www.ft.com/content/8832bffc-f319-36fa-a720-fadaaf86e4f4
Mobisol homepage
https://plugintheworld.com/
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