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Daystar Power, a West Africa hybrid solar power solutions provider, intends to raise about $100 million within the next three years to satisfy existing client demand.
The funding which will mostly be by debt would be sought in $20 million in each fundraising round.
This disclosure was made by Olaedo Osoka, Daystar’s CEO for Ghana, according to the news report by The Africa Report.
According to Osoka; “The market size and funding gap is huge, and our role in bridging this gap will involve us continuously raising funds. The cost of power in West Africa has curtailed the growth of competitive businesses and industries. Daystar’s solution is to reduce typical power costs by up to 30%. Covid-19 pandemic has intensified the need for reliable and affordable electricity.
“Indications into 2021 show an increased demand for our services. Our expectation is to grow exponentially this year. Governments are making headway in creating policies to encourage the transition to solar energy. Still, there is a considerable amount of work to be done from a policy perspective to build the industry.
“We hope to see a more consistent and cohesive approach in policymaking as well as execution of policies to support solar power growth.”
Daystar was founded in 2017 by Sunray Ventures and is quite active in Nigeria, Ghana, Togo and Senegal, with a representative office in Côte d’Ivoire.
A core investor team led by Danish development finance institution, The Investment Fund for Developing Countries raised the sum of $38m for Daystar, in January 2021.
The funds raised are being used to expand and execute critical operations in Ghana, Senegal and Togo. Daystar Power’s clients pay a flat monthly fee or a variable tariff per kilowatt-hour to outsource the management of their power systems.
Services include power audit and assessment of energy needs, proposal of a solution, installation, operation and maintenance. Customers do not incur capital expenditure or pay up-front costs.
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