Okra Solar is targeting 750,000 additional beneficiaries in Nigeria through a planned expansion of its decentralised electricity network, backed by a $7 million debt facility from British International Investment (BII).

The target would take the company’s reported customer connections from more than 13,000 households to a substantially larger network, positioning its mesh-grid technology for a bigger role in a country where millions of people still lack dependable electricity.

Rather than financing household installations directly, the facility will help Okra purchase solar panels, batteries and other equipment in advance, allowing energy developers to avoid waiting for international orders before starting projects.

A larger market for decentralised power

Nigeria’s electricity deficit presents a significant market for companies developing alternatives to conventional grid infrastructure. BII estimates that approximately 90 million Nigerians lack reliable and affordable electricity, with rural settlements particularly difficult and expensive to connect to the national grid.

Small solar home systems can provide basic lighting and household electricity, but businesses requiring refrigeration, milling equipment and other productive appliances often need more substantial power infrastructure.

Okra’s mesh-grid technology is designed to address that gap by connecting multiple households and businesses through shared decentralised electricity networks combining solar panels, battery storage and software controls.

Its system uses two main products: Okra Sprout, a pre-wired hub capable of supplying up to 3.6 kilowatts of alternating-current electricity for heavier users, and Okra Leaf, which serves households with lower electricity requirements.

The company says its technology can reduce distribution costs by up to 60% and accelerate deployment by as much as 70% compared with conventional grid extensions. These are company estimates, with actual performance dependent on local conditions and project design.

Procurement financing could shorten delivery times

The $7 million facility tackles a specific commercial challenge in the distributed energy market: the time between a developer securing a project and receiving the equipment needed to build it.

Previously, Okra generally purchased components after individual project transactions had closed, ordering batches of several thousand units. Manufacturing, procurement and shipping could extend delivery times to Nigeria to approximately four months.

The new arrangement will allow the company to hold larger inventories of long-lead components, including batteries and solar panels, before developers place their orders.

Okra expects this to reduce delivery times to approximately two months. Chief Executive Afnan Hannan said procurement delays can leave communities without electricity even after suitable projects have been identified.

The financing could also help developers benefit from Nigeria’s Distributed Access through Renewable Energy Scale-up (DARES) programme, operated by the Rural Electrification Agency with World Bank support.

The initiative provides results-based financing for eligible new electricity connections, including qualifying mesh-grid systems. Okra has not disclosed any specific DARES-funded projects connected to the facility.

Previous investors backed $12 million round

The latest financing follows Okra’s September 2023 Series A, which raised more than $12 million through equity and debt.

At One Ventures led the $7.85 million equity component, alongside FMO, Susquehanna Private Equity Investments, Autodesk Foundation and King Philanthropies.

EDFi supplied debt financing. Founded in 2016 by Hannan and Damian Veling, Okra operates as a technology supplier to energy developers rather than a direct electricity retailer to households.

Geoffrey Manley, who oversees infrastructure and climate debt investments across Africa and South Asia as BII’s director, said the facility could encourage wider adoption of mesh-grid systems by demonstrating their commercial potential in Africa’s decentralised energy sector.

Jonny Baxter, the British deputy high commissioner in Lagos, pointed to the broader development benefits, noting that dependable electricity can help businesses grow, support job creation and reduce the use of more polluting energy sources.

With Nigeria remaining the primary focus of its immediate expansion, Okra is seeking to turn faster equipment procurement into a larger network of electricity connections across underserved communities.