Scaling Up Renewable Energy Access in Africa
Qotto, a solar kits provider with operations in Burkina Faso and Benin, has secured $8 million in a Series A equity-debt round led by the IBL group, a billion-dollar conglomerate based in Mauritius. The investment is expected to propel Qotto’s growth in existing markets, as well as its expansion into new territories, including Ivory Coast.
Partnership with IBL Group
The IBL group, which has business interests in energy, financial services, logistics, distribution, and engineering, will partner with Qotto to expand the latter’s operations in East Africa. This move is expected to strengthen IBL’s position in the region and increase its exposure to renewable energies.
Expansion into Ivory Coast
Qotto plans to begin operations in Ivory Coast by next month, citing the country’s consistent pace of development as a key factor in its decision to enter the market. According to Qotto co-founder and president, Jean-Baptiste Lenoir, "For Ivory Coast, due to its consistent pace of development relative to the broader West Africa region, and after having tested and optimized operations and services in Benin and Burkina Faso, Qotto is well prepared for a market entry."
New Products and Services
Qotto plans to introduce new products and services in the coming months, including financial services and internet access hotspots. These offerings are designed to complement the company’s existing solar kits and lanterns, which have been successful in providing off-grid energy solutions to individuals in sub-Saharan Africa.
- Financial Services: Qotto will offer micro-insurance, micro-credit, and micro-savings products, in collaboration with partners such as SUNU, a large insurer in West Africa.
- Internet Access Hotspots: Qotto will establish internet hotspots in high-foot traffic areas, providing customers with access to the internet.
Impact on Energy Access
The expansion of renewable energy solutions by companies like Qotto is bridging the energy access gap in least electrified countries in sub-Saharan Africa. According to Lenoir, "In sub-Saharan Africa, 650 million people do not have access to electricity, 550 million do not have access to the internet, and 800 million do not have access to financial services."
Growth Plans
Qotto has reported a revenue growth of 50% year-on-year, with 11,000 active customers at the end of last year. The company plans to more than double its customer base by the close of this year.
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