Why African cleantech needs more receivables financing
Receivables financing is gaining ground as a method of unlocking growth for Africa’s solar pay-as-you-go (PAYGo) companies. By selling receivables to a dedicated facility that raises funding from investors, operators can convert slow-moving customer payments into immediate cash, access capital at lower cost, and free up their balance sheets. This structure shifts currency risk away from companies, creates a ring-fenced cash flow for investors, and builds a new asset class that appeals to domestic and international capital providers. Case studies from Bboxx, Azuri Technologies, SunFunder-backed facilities, and especially d.light’s $842 million track record show how powerful the model can be.
The reason this matters is clear when looking at the history of African cleantech. A decade ago, African cleantech faced a fundamental bankability problem. On paper, the continent offered some of the world’s best conditions for solar energy: abundant irradiation, very low electrification rates, and unreliable national grids that left
