Bridgin, Mirova UK and Hypoport Africa have partnered to establish an innovative facility that will finance the receivables of companies distributing off-grid energy solutions in Mozambique through Paygo-enabled distribution models. The facility aims to address the funding gap faced by these companies, particularly smaller distributors, by aggregating and offering accessible and affordable financing.
Paygo companies often struggle to secure financing that aligns with their unique needs. Smaller distributors are typically overlooked by capital providers due to the small ticket sizes they need, which are seen as costly and complex to manage. Existing funding structures, such as loans or equity, are generally provided in large sums and do not accommodate the incremental funding requirements of Paygo organisations, who need to finance both their inventory needs, and the credit they extend to customers. Additionally, most of the financing is in USD, though local currency financing would better support their long-term stability.
The new facility seeks to solve these challenges by aggregating receivables, allowing Last Mile Distributors (LMDs) to access affordable capital. This will enable companies to expand their portfolios without constantly needing to raise new funds. The facility aims to offer $20 million USD, potentially issued in local currency, in a structure closely aligned to the operational needs of LMDs.
Innovative technology for streamlined funding
The facility will leverage the Bridgin receivables platform and marketplace to purchase receivables from Paygo companies, using real-time data and analytics to assess portfolio performance. By connecting seamlessly with companies’ CRM systems, Bridgin ensures data integrity and allows for automated investment decisions, minimising costly manual due diligence.
"We are excited to contribute to this collaborative step towards accessible financing for Mozambique’s energy distributors. By creating accessible financing pathways, we’re setting the stage for a scalable, long-term impact on energy access in underserved communities"
Manon Dubois, Fintech Business Lead from Bridgin
Hypoport’s PRoMMiSe technology will be used to visualise and analyse the underlying (Paygo) receivable contracts gathered from Bridgin including the fund structure. Hypoport’s PRoMMiSe technology specialises in monitoring underlying contracts structured in public and private fund structures in order to provide full standardized and transparent portfolio reporting to regulators, rating agencies and investors like banks, insurance companies and asset managers.
“Great to experience the commitment to bring the African Off-grid Energy Paygo market ready to invest for more institutional end investors”
Peter van der Linde from Hypoport Africa
Impact Finance Services is Mirova UK’s advisory arm, specialising in corporate advisory, structuring, and fundraising services. It also serves as an incubator for local companies seeking investment readiness and acts as the syndication desk for Mirova’s Emerging Markets strategies. Mirova UK’s IFS team will lead the structuring of the solution and the ultimate fundraising, leveraging on their experience in scaling clean energy and climate investments in emerging markets.
“Mirova UK is excited to be supporting this innovative initiative in Mozambique that aims to bridge the financing gap for last mile distributors of solar home systems and productive use equipment“
Nicole Kugelmass - Managing Director form Impact Finance Services
Additionally, Bridgin will provide back-up servicing, taking over technical aspects, such as payment collection, token generation, software access and communication with customers, ensuring that a minimal level of collection will be maintained in the event a Paygo company defaults.
Financing partners
This initiative is being supported by a number of donors and financing partners who understand the need to bring capital to last-mile distributors. Our finance partners include:
- Acumen through their Hardest-to-Reach Initiative will be supporting with technical assistance to finance the structuring of the facility.
- USAID/Power Africa through the Empower Southern Africa (ESA) Program will provide technical assistance to explore the legal and tax consideration for setting up the facility.
“Acumen’s Hardest-to-Reach is thrilled about funding this innovative initiative that has the potential to create a more vibrant energy market for underserved communities.”
Sandra Halilovic – Head of Acumen’s Hardest-to-Reach Development Facility.
Supporting Sustainable Growth in Mozambique
The goal of the facility is to allow Paygo companies in Mozambique to grow sustainably, expanding access to off-grid energy in a country where, according to GOGLA, only 10% of the potential market has been captured. With a rural population of approximately 20 million people, the impact of this initiative could be transformative, providing traditionally overlooked companies with the resources they need to scale effectively and reach underserved communities with essential technology.
By offering lower-cost, timely financing, the facility empowers LMDs to focus on operational excellence rather than high-growth pressure, supporting long-term success and the broader goal of increasing access to clean energy in Mozambique.