AIIM invests $31m in Africa-focused clean energy company

African Infrastructure Investment Managers (AIIM) has acquired a minority stake in clean energy and next generation utility platform BBOXX’s operations in East Africa, as part of a $31 million investment plan. The infrastructure-focused private equity fund managers and a member of Old Mutual Alternative Investments (OMAI) made the BBOXX acquisition through its African Infrastructure Investment Fund 3 (AIIF3).

BBOXX develops solutions to provide affordable, clean energy to off-grid communities in emerging markets. It will use the growth equity provided by AIIM to accelerate the roll-out of its solar systems, which combine solar panels and batteries with pioneering technology, payable on a pay-as-you-go basis utilizing mobile money, across Rwanda, Kenya and the Democratic Republic of Congo.

“With over 590 million people lacking access to electricity in Africa, coupled with increasing household incomes and a need for power, off grid solar offers a compelling alternative for rural communities and areas with unreliable grid access,” said Ashwin West, Investment Director at AIIM.

“BBOXX’s business model ensures that upfront prices for consumers remains affordable by reducing existing energy costs and spreading the cost of a solar home system over time. We look forward to working alongside the management team as it continues to build on BBOXX’s successes, improving access to power in Africa,” West added.

Since it was founded in 2010, BBOXX has sold more than 150,000 products in more than 35 countries, connecting over 800,000 people with clean, affordable electricity for the first time.

“The deal will allow us to continue to drive disaggregation in what has traditionally been a vertically integrated market and we look forward to partnering together to reach more people across Africa, providing much needed access to electricity,” said Mansoor Hamayun CEO and co-founder of BBOXX.

AIIM has an impressive track record in the African power sector, supporting companies to reach the next stage of growth and evolution. the infrastructure-focused PE firm has through its AIIF3, AIIM’s third pan-African fund, focused primarily on power, transportation and energy infrastructure across sub-Saharan Africa.

AIIM, whose assets across the power, telecommunications and transport sectors is in excess of $2 billion, has also invested in Starsight Power Utility Ltd, a leading energy services company in Nigeria; AIIM Hydroneo, a pan-African hydro power development platform; DSM Corridor Group, a specialist dry bulk terminal operator in Tanzania; Albatros Energy Mali, a 90 megawatt (MW) thermal power station and Amandi Energy Limited, a 200MW thermal power station in Ghana.


Originally published at The Nerve Africa.