Sollatek Kenya Schools & Clinics: 5% Bond
For every £2,000 invested into this campaign Sollatek will be able to source a solar system to be installed on a school or clinic in Kenya
8,450 school children
Your investment will help Sollatek to provide clean energy to 25 schools and 5 clinics
Sollatek is 100% Kenyan owned and managed, and has been operational in East Africa for over 30 years. During this time the market for solar products has changed significantly and with their experience and local knowledge Sollatek is well positioned to help the estimated 29 million individuals in Kenya who are currently 'off-grid' gain access to clean, reliable energy. Over the last 7 years Sollatek has sold over 650,000 solar lanterns and solar home systems (SHS), and aims to sell a further 180,000 by 2018.
This project benefits from match funding thanks to a grant from Good Energies Foundation. Lendahand Ethex Ltd has provided an up-front match of £17,500, meaning that for every £3 invested into this project by the crowd an additional £1 will be invested through match funding.
Key product information
Investment target: £70,000
Minimum investment: £50
Maximum investment: No maximum
Maturity: 24 months
Expected interest rate: 5% per annum
Interest payment frequency: 6 monthly
Notional repayment: 6 monthly
Financial instrument: Unsecured interest bearing bond
This is a bond issued by a single company (rather than a savings product) and therefore it is recommended that you are careful with the amount you invest.
You must read the investment memorandum (provided below) where a full statement of risks is presented.
What the project investment will enable
Over a two-year period, Sollatek will use funds raised for procuring, importing & installing solar systems for lighting, water pumping and/or water heating into schools and health clinics. On average a single community site will cost £2,000 allowing Sollatek to provide solar power for lighting, heating water or pumping to approximately 35 sites. However, many of the sites will have different needs which will determine the size, type and cost of the system, therefore the company projects to be able to install a range between 25-35 sites. The company expects more similar projects to equip additional schools, clinics, orphanages and community facilities in the near future and regards the Energise Africa initiative as a valuable flexible funding partner.
Most of these systems will be paid for through donations and fund raising done by local NGOs or the school itself in their respective communities or may be supported by International charities. Where a system is installed on a financing arrangement the repayments will be determined on a case-by-case basis in accordance to what each organisation can afford. All of the schools and clinics are located in rural, underserved communities that are off-gird or have weak grid connection.
Funds from this campaign will be used to purchase and import high quality solar equipment such as 120-260W panels, maintenance free batteries, charge controllers, invertors, remote monitoring systems, solar water pumps and solar water heaters. In addition to equipment, funds will be used for site surveys, installations and training at each of the sites. All equipment is sourced through trusted international partners and is manufactured to international quality standards as well as being subjected to Kenyan Bureau of Standards (KEBS) import testing. Panels are subjected to 25-year warranty, batteries have 2-year warranty, charge controllers 5 years and invertors 2 years, pumps 2 years.
Sollatek Electronics Kenya
The money raised from this campaign will be used as working capital to allow Sollatek to deliver on a projects working with local NGOs and International Charities and will focus on delivering solar systems to schools and clinics in the “underserved” areas of Kenya, which includes counties of Turkana, Tana River, Kilifi, and Kwale. These areas are defined as "underserved" by the Kenyan Government based on their CRA (Commission Revenue Allocation) report.
Social and environmental impact
Solar systems & lanterns have been shown to have a significant impact on customers' lives and the environment. To date, Sollatek has sold more than 650,000 solar home systems & lanterns across East Africa, and has impacted the lives of around 3.8 million people.
The installation of solar systems to off grid communities has significant impacts that can be divided into the following categories: lifestyle, flexibility, health and safety, and economic. In their 2014 report 'The impact of Solar Lighting on Educational Outcomes' War Child UK measured the impact of installing solar systems in schools in Northern Uganda. Some of their results are presented below along with the expected social benefits from monies raised from this campaign:
Primary school children who benefit from the use of renewable energy
clinics with access to a reliable energy supply for lighting and powering medical equipment
percentage of students with an increased feeling of safety at night
increase in school enrolment for boys
increase in school enrolment for girls
additional at school study hours per day