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Simusolar raises $50,000 on crowdfunding platform KIVA

2/03/2017

Simusolar, a social enterprise providing and financing affordable solar-powered productive systems in rural Tanzania, has raised $50,000 in just a few days on the crowdfunding platform Kiva.The loan will finance working capital for the sale of solar fishing lights used by fishing communities around Lake Victoria.

Small businesses and farmers in rural Tanzania often miss out on income and growth opportunities due to lack of productive equipment, power, and financing. Simusolar provides a package that includes productive equipment and a stand-alone power source for off-grid applications.

The products use built-in mobile technology that allows customers to easily pay in small increments over time at a price the can afford.

Currently operating in the Lake Zone of Tanzania, Simusolar plans to grow country-wide and regionally in a market estimated to be over $3 billion. Over the next five years, the company hopes to serve over 75,000 customers, representing less than 1% of the regional market.

In 2016, Kiva launched the Direct to Social Enterprise loan pilot, which provides interest-free working capital loans to social enterprises, up to $50,000. Kiva is a microloan crowdfunding platform and the average loan size is less than $500.

Simusolar’s Kiva campaign was supported by UK Aid via Energy 4 Impact’s Crowd Power programme, and matched contributions from Kiva lenders. Energy 4 Impact provided up to $25,000 in match funding.

Speaking at the launch of the campaign, Simusolar President Michael Kuntz said:

We are excited to partner with Kiva and Energy 4 Impact, as the loan is the right size, risk appropriate, and flexible enough to suit our working capital needs.  The funding will allow us to sell over 600 solar fishing lights, over doubling the income of fishers over the first year of use.  In total, $250,000 of incremental take-home income will be generated by our clients from this $50,000 investment, a 5x multiple of impact.  Moreover, funding will allow us to build a repayment track record to access future lenders.

Crowd Power Programme Manager, Davinia Cogan, said

Simusolar’s loan is the second Energy 4 Impact has supported on the Kiva platform. We are excited to be a part of Kiva’s Direct to Social Enterprise pilot as we know accessing working capital is a struggle for many early-stage energy businesses – and a clear impediment to growth. This loan will also give Simusolar a chance to build a repayment record, which they can likely use to secure more financing and investment down the line.

To find out more visit https://www.kiva.org/lend/1247422