Andile Ngcaba’s Convergence Partners has invested in Yellow, a leading provider of pay-as-you-go finance for off-grid solar home systems and connectivity for low-income consumers in East Africa.
Lack of access to consumer finance lies at the heart of African consumer difficulties, as it inhibits asset ownership and associated services.
By offering technology through its platform called Ofeefee, which enables last-mile distribution and credit provision, Yellow hopes to overcome those challenges.
Since entering the market in 2018, Yellow’s reach has grown to some 400 000 households in markets that include Malawi, Rwanda, Uganda, Zambia and Madagascar.
Convergence Partners CEO Brandon Doyle said: “We have been tracking off-grid solar power asset finance space for many years but have failed to find a business model and team that we felt we could back until now.
“Yellow’s offering works well with our promise to investors of strong investment returns married to solid social development impact; in this case by tackling the triple challenge of financial inclusion, green energy distribution and broadband penetration, doing so profitably while servicing the unbanked communities of the lowest income countries in Africa.” — © 2023 NewsCentral Media
