Izili Group, a pan-African energy solutions provider, has purchased Qotto, a well-known pay-as-you-go (PAYGo) solar energy provider with operations in Burkina Faso and Benin.
- Izili Group, a pan-African energy solutions provider, has purchased Qotto, a well-known pay-as-you-go (PAYGo) solar energy provider with operations in...
- On Thursday, the strategic acquisition was announced to combine the assets of both businesses to serve off-grid and rural areas...
- The Off-Grid Electricity Fund (OGEF), a fund devoted to increasing access to sustainable energy in underserved African markets, has provided...
- To increase efficiency, attract institutional funding, and meet the growing demand for decentralised renewable energy, larger companies are acquiring or...
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On Thursday, the strategic acquisition was announced to combine the assets of both businesses to serve off-grid and rural areas in six nations, advancing its aim of expanding access to affordable, sustainable clean energy solutions across the continent.
With flexible, mobile money-based payment options, Qotto has established a solid reputation for offering PAYGo solar home systems that give low-income households and small business owners access to dependable electricity.
In thousands of homes across Benin and Burkina Faso, where grid extension remains either unfeasible or prohibitively expensive, the company’s solutions have powered lighting, fans, phone charging, and small appliances.
Combination of Qotto’s customer base with Izili Group’s operational capabilities
The combined company will significantly enhance its impact by integrating Izili Group’s broader operational capabilities with Qotto’s established customer base, distribution network, and PAYGo expertise. The Off-Grid Electricity Fund (OGEF), a fund devoted to increasing access to sustainable energy in underserved African markets, has provided $5 million in convertible bond financing for the transaction.
The agreement is in line with Izili Group’s objective of promoting economic empowerment and closing the energy access gap, the company stressed. “Together, we are accelerating access to energy that empowers households and entrepreneurs,” the company stated. Expanding PAYGo solar solutions, such as solar home systems, mini-grids, and productive-use appliances, for rural and peri-urban communities will be the main goal of the integrated platform.
Plan to distribute over 170,000 solar solutions and 120,000 digital products
The partnership’s ambitious goal is to distribute over 170,000 solar solutions and 120,000 digital products by 2028. It is anticipated that this scale-up will provide hundreds of thousands of people with clean, reliable energy, reduce reliance on dangerous diesel generators and kerosene, enhance health and educational outcomes, and boost local economic activity through more extended workdays and digital connectivity.
To increase efficiency, attract institutional funding, and meet the growing demand for decentralised renewable energy, larger companies are acquiring or collaborating with regional operators in Africa’s off-grid solar market. The acquisition reflects this trend of consolidation.
Positive signal for investor confidence in PAYGo solar models
As multilateral funds and development finance organisations continue to prioritise energy access and climate resilience in sub-Saharan Africa, industry insiders see this as a positive signal for investor confidence in PAYGo solar models.
Qotto and Izili Group intend to begin combining operations immediately, focusing on maintaining service continuity for current clients while accelerating deployment in both nations and exploring expansion into nearby regions.
Statement from the partners
“The acquisition of Qotto marks an important milestone in Izili’s journey, not only for our
expansion in West Africa, but above all for the people it brings together. We are truly proud and excited to welcome the Qotto teams into the Izili Group. Together, we share the same
commitment to impact and the same belief that access to clean energy can transform lives. By joining forces, we will be able to go further, reach more communities, and build a stronger future for the off-grid energy sector,” said Kolawole Osinowo, CEO of Izili Group.
“This is a fantastic opportunity for Qotto to join forces with Izili and BioLite to build a leading player in rural electrification across Sub-Saharan Africa. This merger is the first concrete step in a strategy to make a strong impact on renewable energy access. It empowers our teams to continue – and amplify – our mission: bringing sustainable electricity to those who need it most,” said Jean Baptiste Lenoir, co-founder of Qotto.