Daystar Power, a West Africa hybrid solar power solutions provider, intends to raise about $100 million within the next three years to satisfy existing client demand.
The funding which will mostly be by debt would be sought in $20 million in each fundraising round.
This disclosure was made by Olaedo Osoka, Daystar’s CEO for Ghana, according to the news report by The Africa Report.
According to Osoka,
- “The market size and funding gap is huge, and our role in bridging this gap will involve us continuously raising funds.
- “The cost of power in West Africa has curtailed the growth of competitive businesses and industries. Daystar’s solution is to reduce typical power costs by up to 30%. Covid-19 pandemic has intensified the need for reliable and affordable electricity.
- “Indications into 2021 show an increased demand for our services. Our expectation is to grow exponentially this year.
- “Governments are making headway in creating policies to encourage the transition to solar energy. Still, there is a considerable amount of work to be done from a policy perspective to build the industry.
- “We hope to see a more consistent and cohesive approach in policymaking as well as execution of policies to support solar power growth.”
What you should know
- Daystar was founded in 2017 by Sunray Ventures and is quite active in Nigeria, Ghana, Togo and Senegal, with a representative office in Côte d’Ivoire.
- A core investor team led by Danish development finance institution, The Investment Fund for Developing Countries raised the sum of $38m for Daystar, in January 2021.
- The funds raised are being used to expand and execute critical operations in Ghana, Senegal and Togo
- Daystar Power’s clients pay a flat monthly fee or a variable tariff per kilowatt-hour to outsource the management of their power systems.
- Services include power audit and assessment of energy needs, proposal of a solution, installation, operation and maintenance.
- Customers do not incur capital expenditure or pay up-front costs.