UK-based battery rental firm secures $7m for DRC expansion

From the newsletter
MOPO (Mobile Power), a technology firm dedicated to delivering sustainable energy solutions in Africa, has secured $7 million from the British International Investment. This funding will enable MOPO to expand its solar-powered battery rental business in the DR Congo, providing affordable & clean energy to one million people.

• MOPO operates on a unique pay-per-use business model in that customers can rent, return, and exchange batteries at MOPO’s solar-powered hubs, operated by local agents. 

• It offers two types of rental batteries: The compact MOPO50 is ideal for lighting, phone charging, and powering DC devices, while the larger MOPOMax replaces petrol generators and serves as battery swaps for e-motorbike taxis, supporting 230V appliances.

More details

• With an annual population growth rate of 3.2% annually, which is above Africa's average of 2.42%, Congo faces a challenge in electrifying its population. As of 2024, only 19% of the population had access to electricity, with less than 2% of rural areas electrified.

• In DR Congo, access to both mobile technology and credit remains limited. Most people cannot afford to buy solar home systems or finance grid connections to their homes.  The national electricity grid, managed by SNEL (Société Nationale d’Électricité), is outdated and unreliable, with frequent breakdowns. In addition, the country's challenging terrain, with dense forests, mountains, and rivers, makes it difficult and expensive to build and maintain traditional energy infrastructure. 

• To best serve such a population, customised energy solutions like solar home systems and battery rentals offer a more viable and cost-effective path to electrification. These decentralised approaches can bypass the limitations of the existing grid and provide much-needed power to underserved communities.

• The World Bank has also listed Congo as one of the ten least electrified countries in the world, making MOPO’s presence in the country to provide sustainable energy crucial.

• MOPO has previously obtained $4.4m in funding across four rounds, with the most recent amount raised on January 30, 2024. The investment from the British International Investment brings their total to $11.4m. The company is anticipated to triple its service capacity in the Democratic Republic of Congo within the next 12 months, reaching over one million individuals across the six cities where it currently operates.

• Having invested over $1b in sub-Saharan African energy since 2017, this investment by the British International Investment aligns with the mission to provide universal electricity access to Africans.

• So far MOPO has achieved over 23 million rentals across Africa, with the DRC emerging as one of their key growth markets due to low energy access.

• Its solar-powered battery rental model has the potential to transform energy access in the Democratic Republic of Congo by delivering affordable, clean energy to off-grid communities, thereby enhancing health, education, and economic prospects.

Our take

• DR Congo is promising to be an attractive market for energy companies. The challenge is how to electrify the large population, with the majority lacking access to credit. Battery rental services will work well for now, as it allows consumers to only pay for the energy service, which is affordable to many, rather than owning the energy equipment.

• The next goal would be to provide enough energy to meet more than basic lighting and phone charging needs. This would demand more money, which the majority lack. But asset financing companies can help with this. Several asset financing companies have been successful in this, like M-KOPA. Others can learn from them.