Bringing electricity, let alone that from renewable sources, to some of the most energy poor parts of sub-Saharan Africa is a vexing question and daunting ask for many. But for Yariv Cohen and Angela Homsi, co-founders of Ignite Energy Access, it happens to be a business mission that they’ve proven to be pretty good at.
The duo came together in 2014 to establish their company that brings clean, sustainable energy access to underserved communities in Africa, armed with a splendidly simple yet efficient idea. One that’s predicated on the continent’s most readily available power generation resource – sunlight.
Their company’s commercial model is based on promoting off-grid solar power systems designed for domestic use for individual households, schools and small shops, often in remote rural ares. In industry jargon, that’s an approach banking on distributed renewable energy or “DRE” solutions.
“When embarking on our journey, we were convinced deep down that our distributed modular approach would work in parts of Africa where the grid hasn’t reached and there’s a readily available resource – the sun. And it did,” Cohen said in an interview.
Simple But Splendid
Aiming big but starting small back in 2014, Ignite Energy Access, then known as Ignite Power, first established a foothold in Rwanda. Homes in the country could sign up to a “pay-as-you-go” plan to electrify their home, farm, small business, social project or institution via digital payment plans. After 24 months the users would own the solar panels and equipment.
“In the digital age, we were on our way toward effectively proving that distributed energy is not just a retail business but has the potential to completely change how we have discussions on national level electrification in countries,” Homsi noted.
Within four years of its founding, Ignite had expanded to Mozambique. “We perfected our model one country, and then another, and on to the next, unconstrained by some of the factors legacy operators would have to consider,” said Cohen.
A dramatic drop in the cost of solar panels and batteries along with the increasing adoption of mobile payment systems were vital tools for expansion. So much so, that what started as an initial offering of a plan starting at $4 a month is currently down to less than a dollar.
By 2024, the company’s operating footprint had spread to nine African countries where it currently serves over 600,000 households in 23,000 villages and counting. Such growth came off the back of hard won organic growth as well as strategic acquisitions, the co-founders noted.
In January, Ignite agreed to acquire French utility company Engie’s Africa-focused off-grid solar energy unit – Engie Energy Access – in a deal that will double its footprint in Africa.
The tie-up is on the path toward creating Africa’s largest provider of the full range of DRE services with a combined coverage of 14 African nations and more than 15 million serviceable customers. The combined entity Ignite Energy Access – the name by which company is now known as – will have more than 50 MW of deployed capacity.
Cohen said: “The move will help us achieve our vision of providing sustainable, affordable energy solutions to 100 million people by 2030, and doing so profitably.”
Homsi added: “Having built critical mass and proven our credentials like we did, our philosophy has always been that if you can’t scale up your business, you can’t scale up your impact. This is our fourth acquisition in two years aimed at business acceleration.”
The Big Prize
While the valuation of the Engie deal was not revealed, Ignite is getting bigger and has attracted what Cohen and Homsi describe as the right kind of “patient long-term oriented capital investment.”
Ignite has also branched out into solar powered irrigation systems and is working on clean cooking solutions to wean rural parts of Africa off burning firewood or charcoal to cook meals. This has not gone unnoticed.
The co-founders identified the potential of distributed solar solutions long before it became a trend and channeled it for societal impact. It brought Ignite an accolade in 2023 on the sidelines of COP28 summit in Dubai that changed how the energy and finance community viewed them – the Zayed Sustainability Prize.
Dr. Steve Griffiths, vice chancellor for research, American University of Sharjah, and a Zayed Sustainability Prize Selection Committee member, noted that Ignite did way more than just tick the right boxes to bag the prize.
“The value of an energy company is much more than just its technology and hardware. Both need to serve a broader purpose. Innovation, impact and inspiration are the three pieces we look at. Ignite exceeded the Zayed Sustainability Prize Selection Committee’s expectations on all three counts, having nearly a decade of operations under its belt and proven its mettle via a viable and attractive pay-as-you go business model in some of the most energy poor parts of the world.”
Giving his thoughts on receiving the prize, Cohen said: “The main value of the prize is not just recognition but legitimacy. The first few years were hard for us as a business. But since we bagged the prize, we got more credibility when it came to having meaningful dialogs with a range of third parties from the World Bank to the European Commission. Simply put it opened a lot of doors.”
The company recently received strategic support from the Abu Dhabi Investment Office, and has established its global headquarters in the United Arab Emirates.
“We have 300 professionals and manage around 50,000 agents across Africa. Alongside our headquarters in Abu Dhabi is a finance team in London. Core business is delivered on the ground and that is very much African, with plans for expansion to South Asia in 2026. We are at a scale where the top investment houses in the world are interested in us,” Cohen said.
Homsi added: “And we are highly de-risked with a proven model and growth prospects. And in that we offer a risk-adjusted profile that is truly appealing to a lot of investors on the equity side as well as on debt.”
With accolades and solid backers aplenty, Cohen and Homsi’s firm appears well positioned to offer both sustainability and profitability to investors. Climate financiers seeking a combination of both in the energy transition era may see much to their liking too.