Acumen ’s Hardest-to-Reach (H2R) initiative has made a $5 million investment in Brighter Life by d.light (BLd), a multi-country receivables financing facility established by d.light and African Frontier Capital (AFC). This partnership aims to accelerate access to clean energy for millions across Uganda, Kenya, and Tanzania by addressing cashflow constraints that have historically hindered the growth of solar home system providers.
The investment will specifically fund d.light’s operations in Uganda, enabling the company to serve 2.3 million people, 1.9 million of whom are expected to gain access to clean energy for the first time. By channeling funds through BLd, d.light subsidiaries can access upfront capital to scale operations without accumulating excessive debt or exposing themselves to foreign currency risks.
Solar home system companies like d.light have revolutionized energy access in low-income markets through Pay-As-You-Go (PAYGo) models. This system allows customers to pay for solar products in installments, making them more affordable. However, the extended repayment periods create long cashflow cycles, limiting companies’ ability to reinvest and grow.
BLd mitigates this challenge by purchasing customer receivables from d.light’s solar home system sales, providing immediate liquidity in local currencies. This approach not only accelerates the pace at which d.light can expand its operations but also shields it from currency volatility in a region prone to devaluation.
BLd’s receivables financing model represents a pioneering effort in inclusive energy financing. By separating receivables from the originating company’s credit risk, the facility appeals to a broad spectrum of investors. Additionally, its multi-country structure allows for greater scale and efficiency, setting a precedent for similar financing solutions in Africa’s renewable energy sector.
Sandra Halilovic, Head of Acumen ’s H2R initiative, described the investment in d.light as a milestone in the organization’s efforts to electrify underserved communities. “This is our first Hardest-to-Reach investment in Uganda, and it exemplifies how innovative financial structures can deliver tangible impact. We hope to see this model replicated across other regions to address energy poverty.”
Nedjip Tozun, Co-founder and CEO of d.light, expressed gratitude for the investment, stating: “Acumen ’s support, combined with AFC’s innovative financing mechanism, will enable us to provide clean, safe, and affordable energy to millions more people in East Africa. This partnership exemplifies the transformative potential of scalable, impact-driven solutions.”
Eric De Moudt, Founder and CEO of AFC, highlighted the social impact of the initiative: “This groundbreaking securitization structure promotes both financial inclusion and access to renewable energy, bringing meaningful change to communities across sub-Saharan Africa.”
Founded in 2007 at Stanford University, d.light is a global leader in affordable solar solutions, with a mission to improve the lives of one billion people by 2030. The company has sold over 35 million products, ranging from solar lanterns to televisions, impacting 180 million lives worldwide. d.light was a 2024 finalist in Prince William’s Earthshot Prize, which celebrates innovative approaches to sustainability.
African Frontier Capital (AFC) is an asset management company focused on social impact investments in renewable energy. To date, it has financed $300 million in distributed renewable energy and related assets across sub-Saharan Africa. AFC’s data-driven investment solutions are designed to expand financial inclusion while advancing climate resilience.
Acumen’s H2R initiative is a $250 million program aiming to electrify 72 million people in sub-Saharan Africa over the next decade. By leveraging various financial instruments, H2R seeks to activate clean energy markets in underserved regions and reduce carbon emissions by five million tons.