Acumen has invested $5 million in Sun King’s Zambian subsidiary to expand access to affordable solar energy across the country. The investment will support the company’s nationwide expansion and help it secure additional local-currency financing from Zambian lenders.
The equity investment was made through Acumen’s Hardest-to-Reach (H2R) Catalyze initiative. The $250 million programme focuses on expanding clean-energy access across 17 underserved African markets. In Zambia, the funding will help Sun King scale its operations beyond the national grid and reach more households and businesses.
Expanding Access to Affordable Solar Energy
Zambia continues to face a significant electricity-access gap. Nearly half of the country’s population lacks access to electricity, while rural electricity access stands at 33%, according to the World Bank. Hydropower accounts for 80% of Zambia’s electricity generation, creating a need for greater diversification of the country’s energy sources.
Sun King is expanding its pay-as-you-go solar business to serve customers who remain outside the national grid. Acumen said the investment will help Sun King provide energy access to nearly 5.6 million people over the next five years. Up to 4.5 million of those people are in Zambia and could gain access to electricity for the first time.
“Since launching in Zambia, we have confirmed there is tremendous unmet demand for reliable, affordable solar energy in communities the grid hasn’t reached,” said Krishna Swaroop, Chief Financial Officer at Sun King. “Acumen’s investment gives us the capital and the confidence to continue our nationwide rollout.”
Founded in 2007 by T. Patrick Walsh and Anish Thakkar, Sun King designs and distributes solar kits and appliances, including lights, fans and televisions. The company began operating in Zambia in 2021 as Greenlight Planet Zambia and says it has since delivered one million solar kits in the country. It also operates in markets including Nigeria and Kenya.
Scaling Through Local Financing
Sun King’s pay-as-you-go model allows customers to spread payments for its solar systems over 12 to 24 months through mobile money. The company has also used local financing to expand the model in other African markets.
Acumen’s investment is intended to help Sun King attract financing from local lenders, giving the company access to additional capital as it expands its operations in Zambia.
“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,” said Sandra Halilovic, Head of H2R Catalyze at Acumen.
She said the investment was designed to accelerate the company’s growth, help close the energy-access gap and bring local-currency debt from financial institutions into the sector.
Through H2R, Acumen has also backed off-grid energy companies in Malawi, Somalia, Benin and Uganda through financing structures that include loans and receivables financing.
In Zambia, Acumen previously invested $1.25 million in solar distributor RDG Collective through an impact-indexed loan. The funding was used to finance solar home system inventory and solar generators. That investment is expected to provide energy access to 66,000 people and power 180 small businesses.
