SIMA Angaza Distributor Finance Fund
A data-driven investment fund providing access to debt capital for clean energy distributors in developing markets.
Leveraging Angaza’s Data-Rich PAYG Software with SIMA’s Investment Expertise
With permission from interested Angaza distributors, the DFF combines SIMA’s underwriting technique with data from the Angaza Hub to assess eligibility for funding, reduce the duration and complexity of due diligence, and monitor and report on loans.
Closing the Financing Gap for High Potential Distributors
While investments in the off-grid sector increased by 20% from 2017 to 2018, the growth rate falls short of meeting the $5.7 billion needed until 2022 to sufficiently accelerate the sector. This dearth of funding especially impacts distributors selling life-changing products on a pay-as-you-go basis. These distributors need capital to fill the cash flow gap they experience by virtue of receiving installment payments over time instead of the full price of the product at the point of sale.
By providing debt capital to traditionally overlooked distributors, the data-driven DFF accelerates the growth of the off-grid energy sector while increasing access to life-changing products for families across developing countries.
Implementing Gender-Inclusive Best Practices
Women are most impacted by lack of access to clean energy solutions. However, research has found that the last-mile distribution sector fails to integrate women’s experiences and expertise, exacerbating the gender gap in energy access.
The SIMA Angaza Distributor Finance Fund applies a gender lens to its investment process with the goals of increasing women’s participation in the sector and generating greater positive impact on the lives of women. With the support of Power Africa and in partnership with 60 Decibels, the Fund provides client, impact, and business insights that enable portfolio companies to develop strategies for advancing gender equity. The Fund also seeks to support companies that are founded or led by women, excel in employing and promoting women, or primarily serve female customers.
The Global Distributors Collective’s first-of-a-kind report highlights the DFF and the vital role of these distributors in creating markets for beneficial products and effectively reaching last mile customers. It contains a wealth of new data and insights and provides tangible recommendations for stakeholders on how to engage with and support the sector.
Interested in investing in the DFF?
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