In Sub-Saharan Africa, almost 600 million people live without access to electricity. Many households and small businesses rely on costly and polluting alternatives such as kerosene, batteries, diesel generators and informal phone-charging services. Limited energy access also affects food systems: lack of effective refrigeration contributes to the loss of 526 million tonnes of food production globally each year — around 12% of global food production.
The Pay-As-You-Go (PAYGO) model addresses this gap by letting customers access solar home systems, appliances and productive-use equipment through affordable instalments — typically repaid over 12 to 36 months via mobile money. Systems include panels, batteries, LED lights, radios and TVs; productive-use products range from refrigerators and water pumps to cooking solutions.
image by d.light
PAYGO companies must fund equipment, inventory and customer growth upfront while repayments are collected over time. GOGLA and ESMAP estimate around US$21 billion is required to realise off-grid solar's contribution to universal energy access.
AFC provides receivables-backed working capital financing to Pay-As-You-Go (PAYGO) companies, in Africa and globally.
We partner with PAYGO firms, offering receivables financing that bridges the working capital gap.
Our financing empowers companies to focus on operations and their mission of providing energy access at the base of the pyramid — driving positive social and environmental impact.
AFC has deployed numerous debt facilities to provide local currency lending to PAYGO companies.
We seek to mobilize institutional capital to help close the working capital gap.
We package receivable assets (with hedged FX risk) into well-understood, standardized finance offerings that institutional investors and mainstream rating agencies can efficiently evaluate.
We have been dedicated to providing capital to Sub-Saharan Africa's growth entrepreneurs, platforms and businesses since 2010. As a team, we have transacted across renewable energy, real estate, ICT, rail, aviation, power, agriculture and service sectors — with successful exits and on-the-ground transactional experience in East, West and Southern Africa.
AFC & d.light — awarded by the African Solar Industry Association (AFSIA) for the $176 million securitization facility for PayGo consumer finance.
The USAID Scaling Off-Grid Energy Grand Challenge — a global partnership of USAID, Power Africa, Shell Foundation, DFID and the African Development Bank, aiming to extend energy access to 20 million households by 2030.
Private Equity Africa Magazine's Special Recognition Award.
Off-grid solar is a proven driver of clean energy access and economic opportunity. These sector facts highlight the scale and relevance of the market African Frontier Capital invests in.
People benefiting from clean energy access through off-grid solar products
Avoided emissions from solar energy kits sold by GOGLA-affiliated companies since 2010
Economic impact generated since 2010 through income opportunities and savings from off-grid solar kits
People undertaking more economic activity as a result of owning an off-grid solar energy kit
Of new electricity connections in Sub-Saharan Africa came from OGS between 2020 and 2022
People for whom OGS is the least-cost route to electricity access by 2030
Sources: GOGLA / ESMAP Off-Grid Solar Market Trends Report 2024; GOGLA Global Off-Grid Solar Market Report Annual Sales & Impact Data, 2025.