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Convergence Partners invests in solar power firm

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 21 Jun 2023
Andile Ngcaba, chairman of Convergence Partners.
Andile Ngcaba, chairman of Convergence Partners.

Convergence Partnershas closed-off its investment in East African company Yellow, the Andile Ngcaba-led tech investment firm says in a statement.

Yellow is a provider of pay-as-you-go finance for off-grid solar home systems and connectivity solutions for low-income consumers in parts of East Africa.

According to the statement, this marks the fourth investment through its $300 million (R5.5 billion) Convergence Partners Digital Infrastructure Fund.

The company notes that lack of access to consumer finance is at the heart of African consumer pain points, as it inhibits asset ownership and their associated services.

Through its proprietary tech platform Ofeefee, which enables last-mile distribution and credit provision, Yellow has become a catalyst for change and a model for leveraging technology to solve the most pressing problems of everyday African households, says Convergence Partners.

Since entering the market in 2018, Yellow has grown its reach to more than 400 000 households across Malawi, Rwanda, Uganda, Zambia and Madagascar.

Brandon Doyle, CEO of Convergence Partners, comments: “We are excited to be backing the Yellow team. We have been tracking the off-grid solar power asset finance space for many years, but have failed to find a business model and team that we felt we could back until now.

“Yellow’s offering also sits well with our promise to our investors of strong investment returns married with solid social development impact. In this case, by tackling the triple challenge of financial inclusion, green energy distribution and broadband penetration, and doing so profitably while servicing the unbanked communities of the lowest income countries of Africa.”

“We are excited and honoured to welcome Convergence Partners as shareholders in Yellow. They are investors with great vision,” adds Michael Heyink, CEO of Yellow.

“As a management team, we believe they will add huge value in helping us deliver digital and financial inclusion across Africa.”