The Eastern and Southern African Development Bank Group (TDB Group) has provided a $30m securitisation facility to fund solar-powered product purchases by low-income, off-grid people in Tanzania. The revolving facility will be able to fund up to $125m of receivables over its lifetime.

The underlying loans are originated by d.light – who produces and finances solar-powered lighting, batteries, and other products for use by off-grid customers.

d.light has been securitising its lending in Kenya since 2020 – and raised $460m there so far. This is the company’s first securitisation in Tanzania.

Tanzania has a population of over 60 million, and 60% of the population lack electricity access.

This form of development bank securitisation partnership is a material support for d.light’s plans to continue to expand across Africa.

Other manufacturers who produce products that support poverty reduction may want to consider whether they can use a similar strategy to enhance their product accessibility, their sales and their geographical expansion.