RDG Collective Secures $1.25M Investment from Acumen to Boost Solar Access in Zambia

Acumen’s Hardest-to-Reach (“H2R”) initiative has invested $1.25 million in RDG Collective, an off-grid solar distributor in Zambia. The purpose of the investment is to fund RDG’s inventory purchase of solar home systems, enabling 66,000 people to receive energy access and mitigating at least 7,000 tCO2eq. The investment will also enable the purchase of solar generators, which will offer a resilient and clean source of energy to 180 small businesses, generating income and supporting local economic development at a time when Zambia’s highly hydropower-dependent grid connection is severely depressed due to El Niño-induced droughts.

The investment was structured in two innovative ways: (1) as an Impact Indexed Loan, where the interest rate reduces as certain impact milestones are reached, and (2) through an on-lending structure via a partnership with BioLite, which is one of RDG’s product manufacturers.

Rune Gunnar Dige, CEO and founder of RDG Collective said: “We are proud to partner with Acumen for the first time as part of their innovative Hardest-to-Reach initiative. This investment will enable RDG to accelerate the distribution of thousands of Solar Home Systems through our countrywide network, a significant milestone toward achieving universal energy access in Zambia."

Ethan Kay, Managing Director Emerging Markets, BioLite stated: “We are thrilled to work with Acumen’s Hardest-to-Reach and our partner RDG to expand solar electricity access to over 16,000 off-grid households and 180 off-grid businesses in Zambia. Without this facility, these families and businesses would lack access to a clean, reliable, and safe way to light their homes, power their appliances, and stay connected.”

Sandra Halilovic, Investment Director stated: “RDG Collective’s dedication to providing high-quality solar solutions and their potential for growth makes them an ideal partner for our Hardest-to-Reach initiative. We are also thrilled to be partnering with BioLite through this innovative on-lending structure. This investment is a testament to our commitment to sustainable energy solutions that empower and bring dignity to low-income communities and demonstrates the potential that innovative impact-linked finance instruments, such as impact-indexed loans, hold for climate solutions like decentralized renewables.”

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