INTELLIGENT BRANDS // Green Technology
MTN partners with Fenix
International to launch
off-grid solar in Zambia
M
TN, Africa’s largest telecoms
company, is extending its
partnership with energy
and financial services firm Fenix
International to launch pay-to-own solar
home systems in Zambia. The Swedish
Embassy in Zambia is committing
nearly $3m (SEK 24,750,000) to Fenix
in Zambia between now and 2020,
with USAID contributing an additional
$750,000 to the company.
The launch in Zambia represents the
first step in Fenix’s expansion across
Africa with their flagship product,
ReadyPay Power, which provides off-grid
customers access to ultra-affordable
solar power. Approximately 15 million
Zambians live without access to the
electrical grid, representing 80% of
the total population and 95% of rural
residents. Fenix will extend its own
proven model for making solar power
accessible and affordable, which has
doubled the company’s Ugandan
customer base in just 12 months. With
backing from the Swedish Embassy and
USAID, Fenix expects to reach 850,000
rural Zambians by 2020. ReadyPay
Power is an expandable solar home
system designed to provide power to
households and small businesses that
the grid has failed to reach. Customers
make instalments of as little as $0.20
per day via MTN Mobile Money until
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they have paid in full. Fenix uses these
continuous micro-payments to generate
a credit score, enabling customers to
access additional system upgrades or
financial services.
Lyndsay Handler, CEO of Fenix
International, comments, “Over 90%
of rural Zambians lack access to
electricity and have no options other
than dangerous candles and kerosene
lanterns to light their homes. This is
the harsh reality of the situation which
we are working to change. Our solar
home systems not only provide light
and energy, but our unique Fenix credit
score makes upgrades and additional
life-changing products accessible to
committed customers as their needs
and incomes grow. Ten years from
now, we hope to eliminate the use of
candles and be an important part of our
customers’ lives across Zambia.”
Wane Ngambi, Head of Mobile Financial
Services, MTN Zambia, adds: “My
colleagues in Uganda have been blown
away by the growth they’ve witnessed
with the ReadyPay system. In the past,
MTN was focused on voice, and then
data. We’ve been working on unlocking
the potential of MTN Mobile Money for
many rural consumers who have gone
without access to basic financial services
for far too long.
“The transformative relationship
between MTN Mobile Money and off-
grid energy has been an exceptional
revelation. MTN Mobile Money now sits
at the heart of many households, who
use these simple and secure services
daily to light up their lives. For us, this is
all part of the mission to create mobile
solutions which make a difference.”
Lyndsay agreed: “With MTN’s
distribution networks, we’ll be able to
reach unbanked and off-grid customers.
Once power and credit are established,
the possibilities to bring other life-
changing products – from smartphones
to financial services – are endless.”
Funding from the Embassy of Sweden
in Lusaka is provided as part of the
Power Africa: Beyond the Grid Fund
Zambia (BGFZ) initiative. This is
managed by REEEP (the Renewable
Energy and Energy Efficiency
Partnership). BGFZ aims to bring
basic clean energy access to 1 million
Zambians and accelerate private sector
growth in clean energy generation and
distribution in the country. USAID’s
additional $750,000 support is
provided as part of its Scaling Off-
Grid Energy: Grand Challenge for
Development, which aims to create up
to 120,000 new connections in off-grid
communities across Africa. n
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