British International Investment

M-Kopa Ltd.

East AfricaFinancial services

M-Kopa is Africa’s leading connected asset financing provider, selling a diversified range of devices including smartphones, digital financial services such as cash loans and solar home systems in Kenya, Uganda, Nigeria and Ghana. Its products are sold through a “pay-as-you go” (“PAYG”) model, requiring clients to pay an initial deposit followed by daily instalments via mobile money. As of today, the company has over 1 million active customers.

Our investment

Description of the investment.

BII participated with US$5m as part of a US$200m local currency debt financing facility alongside Stanbic, IFC, FMO, Lion’s Head Global Partner, Sunfunder and Nithio.

Impact information

Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.


  • Improve quality of life by extending access to affordable, reliable and modern financial services and energy services (SDGs 7.1, 7.2 and 1.4).
  • Improve quality of life by extending access to mobile ICT and the internet (SDG 9C).



Our investment will finance sales growth by providing debt capital to fund M-KOPA’s PAYGo phones product, enabling more affordable access to smartphones and mobile internet. Our investment will help to finance sales growth, by providing debt capital to fund M-KOPA’s receivables book for PAYGo solar home system products, enabling more affordable access to energy services and unbanked customers to establish credit histories.


Stakeholder Geography Characteristics
Consumers (mobile phones)


Mobile phone customers are mostly peri-urban/rural consumers earning a median daily income of KES 395 ($3.60). Average income for customers previously owning a feature phone is $3 per day while those previously owning a smartphone earn on average $4.50 a day.

Consumers (cash loans)


Consumers (solar home systems)

Solar home system consumers are peri-urban/rural consumers earning a median daily income of KES 18,000 ($5.40). 80 per cent of current solar customers are low-income, earning $2-3 per day.

How much?

Scale Depth/Duration

The most recent investment will reach 5,896,000 new phone customers.

In addition, it will reach 28,700 new households through solar home system sales. This would bring total households with new energy access to 983,000.

Further, as of 2022, M-KOPA will also reach customers through its cash loan product. We expect to reach 693,300 cash loan customers.

Expected to be deep as 60 per cent of phone customers are accessing mobile internet for the first time and 80 per cent of M-KOPA’s PAYGo solar home system customers did not previously have electricity access, and


  • Value-add: CDC is offering preferential terms (e.g. increased risk share or longer tenors) for the least developed countries and COVID-19 priority sectors such as food/healthcare commodities to help support trade flows in essential goods.


Execution Risk

Relates to the risk that a higher proportion of M-KOPA’s phone Customers will be existing smartphone users than expected, which will result in lower than predicted Depth of impact for Expanding access to mobile internet. Considered low risk Given that lower-income consumers are more likely to be targeted as the product line expands.

Execution Risk
  • Relates to the risk that M-KOPA is unable to expand its receivables portfolio across solar home system and phone product lines at the expected rate and thus deliver impact. This is directly correlated with commercial risk.

Impact score

Impact score (at point of investment)

The Impact Score is a tool to help us manage our performance against our strategic impact objectives. It is designed to incentivise investments that support our productive, sustainable, and inclusive objectives. You can find out more here.

The Impact Score is published for investments made from 2022 onwards. The Impact Scores are calculated at the point of investment. We publish the Impact Scores of new investments annually, once the information has been externally assured by an independent third party.


Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

We are working with other off-grid solar companies, lenders and industry stakeholders to strengthen consumer protection, and to improve environmental and social management within M-KOPA. This includes an e-waste pilot programme and consumer protection standards via our equity investment, which are reinforced in our most recent commitment.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    June 2024
    Project number

    An identifier number shared by investments in the same project.


    The current status of the investment (green flag for active and red flag for exited).


    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    East Africa

    The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.


    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    Financial services

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Start date :
    December 2022
    Amount :
    Currency of investment :

    The company or investment fund’s place of incorporation.

    Climate finance type:
    2X Gender Finance

    Indicates whether the investment is ‘2X qualified’ using the 2X Challenge criteria. You can find out more here. It only applies to investments made from 2018 onwards, when the 2X Challenge was first launched.

    Fully qualified

Related investments made by BII into this company:

Investment name Commitment Region Sector Start date Status
Investment 01 $18m East Africa Financial services June 2017 Exited
Investment 02 $1.99m East AfricaEast Africa Financial services April 2021 Exited

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