- Website: www.pegafrica.com
- Sector: Technology & Telecoms
- Country of operations: Ghana
Clean energy for all
PEG has taken advantage of pay-as-you-go technology and low-cost mobile payment systems to supply clean energy to customers who couldn’t previously afford it.
The company, which is based in Ghana, sells pay-as-you-go solar home systems to households that typically earn $5-$10 a day. “We enable customers to replace their perpetual spending on poor-quality polluting fuels, such as kerosene, with a solar home system that not only delivers higher-quality energy, but also quickly becomes an asset that the customer owns,” explains CEO Nate Heller.
But PEG doesn’t only provide affordable power to customers in West Africa – it also allows them to build up an all-important credit history. “While customers are repaying their loan for the solar home system, they build up a credit history with PEG that allows them to borrow for additional products and services over time,” explains Nate.
“Our solar house system becomes an asset that the customer owns”
PEG has recognised that there are around 500 million people in Sub-Saharan Africa without electricity and that the vast majority of them don’t have access to formal banking services. This means that these people are often ignored by other power providers, who see them as either too poor or too remote.
“The success of companies like PEG, who serve customers previously ignored by many large corporates, will hopefully help highlight the opportunity that they are missing out on,” says Nate.
- 500m people in Sub-Saharan Africa don’t have access to electricity or formal banking services
The company has a market-leading position, employing around 400 full-time and commission-based employees and contractors – up 40% in the past 18 months. “We expect our total workforce to grow to about 2,000 by 2021,” says Nate. “And we intend to reach three million people by 2021 by delivering nearly one million asset-backed loans.”