Acumen Invests $5 Million in Sun King’s Zambia Solar Business

Acumen has invested $5 million in Sun King’s Zambian subsidiary to expand the company’s off-grid solar operations and help it attract additional financing from local lenders.

The equity investment was made through Acumen’s Hardest-to-Reach Catalyze initiative, a $250 million programme focused on increasing clean-energy access across 17 underserved African markets.

Sun King is expanding its pay-as-you-go solar business in Zambia for households and small businesses that remain outside the national electricity grid. Under the model, customers can pay for solar systems over periods of 12 to 24 months through mobile money.

Investment targets wider energy access

Acumen said the investment could help Sun King provide energy access to nearly 5.6 million people over the next five years. That projection includes up to 4.5 million people in Zambia who, according to Acumen, could gain access to electricity for the first time.

The investment comes as Zambia continues to face significant electricity-access challenges. The World Bank reports that nearly half of the country’s population lacks access to electricity, while rural electricity access stands at 33%. Hydropower accounts for 80% of Zambia’s electricity generation, according to the bank.

Sandra Halilovic, Acumen’s head of H2R Catalyze, said Sun King’s experience in other markets and demand for affordable clean energy in Zambia influenced the decision to invest.

“Sun King’s proven track record across other markets, combined with the clear demand for affordable, clean energy in Zambia, gave us confidence that its model could scale quickly in this newer market. Our investment was designed to help accelerate that scale and close the energy access gap faster, while also crowding in local currency debt from local financial institutions,” Halilovic said.

Sun King’s Zambia expansion

Sun King began operating in Zambia in 2021 under the name Greenlight Planet Zambia. The company says it has since delivered one million solar kits in the country.

Its products include solar lights, fans and televisions designed for off-grid households and small businesses. The company was founded in 2007 by T. Patrick Walsh and Anish Thakkar and also operates in markets including Nigeria and Kenya.

Krishna Swaroop, Sun King’s chief financial officer, said the company had identified strong demand for reliable and affordable solar energy in communities that are not connected to the grid.

“Since launching in Zambia, we have confirmed there is tremendous unmet demand for reliable, affordable solar energy in communities the grid hasn’t reached. Acumen’s investment gives us the capital and the confidence to continue our nationwide rollout,” Swaroop said.

Acumen’s investment is also intended to support further borrowing in Zambia’s local currency. The investor has not identified the lenders Sun King plans to approach or specified the amount of additional financing the company aims to secure.

Acumen’s off-grid energy portfolio

The Hardest-to-Reach initiative has supported off-grid energy companies in countries including Malawi, Somalia, Benin and Uganda through loans and receivables financing.

In Zambia, the initiative previously invested $1.25 million in solar distributor RDG Collective through an impact-indexed loan. That investment was expected to provide energy access to 66,000 people and power 180 small businesses.

The terms of Acumen’s new equity investment, including its ownership percentage and Sun King’s valuation, were not disclosed.