2026 Perspectives for the Public Sector

Mission 300 recognizes the crucial role of local governments in enabling off-grid energy solutions. Supported by The World Bank, governments on the continent are spearheading the development of National Energy Compacts that outline the contextual needs of each country to expand power generation and energy access. This initiative has seen significant traction, with 29 countries in Sub-Sahara Africa completing their National Energy Compacts. This positive momentummirrors past successes. For example, Kenya’s recognition of off-grid solutions in its national electrification strategy in 2018 enabled providers such as Sun King to scale pay-as-you-go off-grid solar home systems, expanding energy access. The International Energy Agency has also recognized the key role of off-grid solar solutions in Kenya’s realistic path to universal electrification by 2030. A key feature of pay-as-you-go business models is enabling underserved households with limited purchasing power or credit history in Sub-Sahara Africa to afford a solar home system by providing embedded financing. A key feature of pay-as-you-go business models is enabling underserved households with limited purchasing power or credit history in Sub- Sahara Africa to afford a solar home system by providing embedded financing. This means that for every pay-as-you-go consumer sale, Sun King generates a receivable, which creates a working capital need. To continue scaling, companies like Sun King require access to diverse sources of local currency financing, including private capital. This is where Citi can help. We have enabled Sun King to raise more than $360 million in debt financing reaching an estimated 3 million households. Most recently, Citi led Sun King’s $156 million (Kenya shilling equivalent) securitization, the largest instrument of its type in Sub-Sahara Africa (outside of South Africa). This securitization also demonstrated the role of development finance institutions in mobilizing local bank participation. Critically, these revolving securitization facilities enable Sun King to monetize their consumer receivables, decrease the cash conversion cycle, and scale energy access faster. Interestingly, Sun King is now using pay-as-you-go mechanisms to expand their product offering to other high- impact products like smartphones or clean cooking devices for the same target market population. 26 Energy Access in Africa