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Acumen‘s Hardest-to-Reach (“H2R”) Catalyze initiative has closed a $5 million equity investment in Sun King‘s Zambia subsidiary. The Hardest-to-Reach is a $250 million initiative designed to activate clean energy markets in 17 underserved geographies across Africa.
The investment supports Sun King’s expansion in Zambia, a market with significant unmet demand, and is designed to unlock local-currency financing for its growth.
With Acumen’s backing, Sun King expects to bring electricity to nearly 5.6 million people over the next five years, including up to 4.5 million people gaining access for the first time.
“Since launching in Zambia, we have confirmed there is tremendous unmet demand for reliable, affordable solar energy in communities the grid hasn’t reached. Acumen’s investment gives us the capital and the confidence to continue our nationwide rollout. We’re proud to bring our products to more Zambian households and businesses, and grateful to Acumen for making this the first equity investment into one of our country-level businesses,” said Krishna Swaroop, chief financial officer at Sun King.
Founded in 2007, Sun King designs, finances, distributes, installs and services solar systems for households and businesses with little or no access to electricity, ranging from entry-level kits for lighting and phone charging to multi-kilowatt systems for large homes, businesses, schools and health centres.
Its pay-as-you-go model lets customers buy a system on a loan repaid over 12 to 24 months in daily, weekly or monthly instalments by mobile money, from as little as $0.26 a day.
Zambia is one of the target markets for Acumen’s Hardest-to-Reach initiative. Only about half the population currently has access to electricity, with access much lower in rural areas, and recent droughts have strained the power system further by cutting hydropower generation, which supplies most of the country’s electricity.
Acumen is a global impact investor that backs entrepreneurs and innovators in underserved markets. Founded in 2001 by Jacqueline Novogratz, Acumen uses what it calls Patient Capital to build sustainable businesses that serve the poor, and says it has improved more than 500 million lives.
“Sun King’s proven track record across other markets, combined with the clear demand for affordable, clean energy in Zambia, gave us confidence that its model could scale quickly in this newer market,” said Sandra Halilovic, Head of H2R Catalyze.
The equity capital serves two purposes: it funds Sun King’s rollout in Zambia and signals confidence to attract local loans, expanding Acumen’s impact beyond $5 million.
Over the next 10 years, Acumen aims to bring electricity to 72 million people in sub-Saharan Africa through Hardest-to-Reach, potentially avoiding 5 million tons of carbon emissions.
“Our investment was designed to help accelerate that scale and close the energy access gap faster, while also crowding in local currency debt from local financial institutions. By providing equity capital that helps unlock additional financing from local lenders, we can extend the impact well beyond our own investment,” concludes Halilovic.
