Baobab Group has announced the successful completion of the sale of its majority stake in Baobab+ to BioLite.
This strategic divestment will enable Baobab+ to leverage BioLite’s technological expertise and operational strengths, accelerating innovation and sustainable growth in renewable energy solutions across Africa.
Concurrently, the transaction aligns with Baobab Group’s strategic focus on its core business: providing financial services to small businesses and underserved communities throughout the African continent.
Operating in Senegal, Côte d’Ivoire, Nigeria, and Madagascar, Baobab+ is a prominent provider of off-grid renewable energy solutions.
As the company approaches its 10th anniversary, Baobab+ continues to grow rapidly, making a significant positive impact on communities across the region.
To date, Baobab+ has equipped more than 425,000 households with solar energy, improving the quality of life for over 2.5 million people.
In addition to its primary mission, Baobab+ promotes digital inclusion and has equipped over 263,000 customers across its markets with smartphones and other digital devices, primarily through pay-as-you-go financing plans.
BioLite, founded in 2009 and headquartered in New York and Nairobi, is a social enterprise dedicated to renewable energy solutions.
Known for its innovative products across cooking, charging, and lighting, BioLite meets the unique needs of both energy-poor communities and outdoor enthusiasts through its distinctive “Parallel Innovation” model.
BioLite has already positively impacted over 14.6 million lives worldwide by offering safe, affordable, and sustainable energy solutions.
BioLite has been Baobab+’s primary supplier and strategic partner in off-grid solar products for the past six years.
This change in ownership structure marks a significant milestone, creating opportunities for even greater collaboration, growth, and innovation.
With BioLite becoming the majority shareholder, Baobab+ is now well positioned as a vertically integrated provider of renewable energy solutions and a market leader in most of the countries where it operates, poised to champion renewable energy across the African continent.
The new shareholders, BioLite and Norfund, have appointed Kolawole Osinowo as Chief Executive Officer of the Baobab+ Group.
Since 2021, he has successfully led the transformation of Baobab+ Nigeria into a Solar PAYGO Centre of Excellence.
His solid experience and strategic vision will be instrumental in steering the Group through this next phase of growth and development.
The Chief Executive Officer of Baobab Group, Philip Sigwart, expressed pride in the group’s decade-long support for Baobab+, which has enabled the company to serve over 425,000 households across its African markets.
He highlighted Baobab+’s consistent delivery of high-quality renewable energy solutions that empower both families and entrepreneurs.
Sigwart emphasized that Baobab Group’s decision to divest aligns with its strategic vision—allowing Baobab+ to advance into a new phase of growth while Baobab Group refocuses on its core mission: providing financial services to small businesses and underserved communities across the continent.
The Chief Executive Officer of Baobab+ Group, Kolawole Osinowo, described the new chapter as a purposeful scaling of operations, driven by innovation from BioLite and strong backing from Norfund.
He expressed his enthusiasm about leading the company forward with a team of dedicated professionals and reaffirmed Baobab+’s commitment to deepening local impact and delivering sustainable energy solutions throughout Africa.
Osinowo also extended gratitude to Baobab Group, whose steadfast support, he said, played a critical role in expanding access to energy and digital tools for underserved populations.
The Chief Executive Officer of BioLite, Jonathan Cedar, shared his excitement about becoming the new shareholder of Baobab+, following a successful six-year partnership between the two organizations.
Cedar noted that the transaction aligns with BioLite’s mission to empower people and protect the planet through renewable energy.
He emphasised the operational synergies and improved investor confidence that the partnership brings, paving the way for a financially stable growth platform.
Cedar also pointed out that BioLite’s carbon finance model would be better utilized across Baobab+ markets, lowering consumer costs and improving profit margins.
He affirmed BioLite’s commitment to closely support the Baobab+ team in scaling operations, enhancing profitability, and delivering impact across key markets.
The Senior Vice President at Norfund, Birgit Edlefsen, described the development as a leap forward for Baobab+ and a strong continuation of Norfund’s strategy in the African distributed energy sector.
As a Development Finance Institution and key investor, Norfund views backward integration and consolidation as critical to the long-term success of last-mile distributors.
Edlefsen confirmed that Norfund will maintain a significant minority stake in Baobab+ as the company embarks on its next phase of growth.
Baobab Group as the Seller was advised by Enexus Finance as its M&A advisor, Gide Loyrette Nouel as legal advisor and PwC as provider of the Tax Vendor Due Diligence (VDD) services.
