Navigating Credit Risk in Africa’s Cleantech Sector
The shift towards disintermediated, de-centralised energy generation in Africa is moving at a fast pace. The failure of many African governments to meet the energy needs of their economies has forced individuals and businesses across the continent to seek alternate sources of power. To aggregate this demand, energy-as-a-service (EaaS) is becoming a scalable business model to entrepreneurs and companies that have been able to identify, implement, execute and derive its strategic benefits.
OneWattSolar (Owatts) is a Nigeria-HQ, Africa focused “cleantech” decentralized EaaS aggregator, with a high end, transparent digital payment/blockchain platform. Owatts makes clean energy available to a wide spectrum of clients across varied sectors (households, businesses, schools, commercial and retail sector clients as well as non-profit and government organisations) at a low and affordable cost. The Company has grown rapidly in both its local and neighbouring west African markets and is now focused on expanding its regional and continental footprint across Africa, with the aim of delivering up to 14 GW of sustainable energy to Nigeria and the rest of Africa by 2030.
To reach a growing customer base and navigate the unknown credit risk associated with new markets, Owatts saw the need for a structured and integrated credit solutions platform. Partnering with Specta Enterprise, Owatts has been able to reach a wider market, without the risk associated with its uncertainty.
Specta Enterprise, by Sterling Bank (a leading financial services provider to SMEs and large corporations in Nigeria), is a cutting edge credit risk management solution, built on a flexible algorithm and adapted to the African market. Specta gives instant credit decisions and minimises the digital journey, from application to disbursement. No paperwork is required. The platform was created to streamline the credit screening process by analysing consumer data against the most pertinent risk criteria, which aids both financial and non-financial institutions to make informed credit risk decisions.
Owatts will use the partnership to grow its C&I Solar (Commercial and Industrial) business while managing the implied credit risk. Verdant Capital is currently raising equity and venture debt for Owatts.