Why Asoba DeFi?
Our Vision Creating Africa’s premier, trans-national clean energy network with a goal of supporting 99.999% electricity reliability by 2030.
Our Mission Building a high liquidity investment platform that Diasporan, retail and institutional investors can use to profitably support the development of utility scale solar farms across east and southern Africa.
We are a team of African Diasporans, solar developers, and web3 enthusiasts. Which means that we have a deep understanding of how to do business on the ground in Africa. We have a track record of deploying renewable energy resources. And we have a strong thesis for how to leverage web3 to overcome traditional financial barriers to liquidity that renewable energy projects face across the continent.
That thesis lead to the growth of what we believe to be the future of clean energy development in Africa.
Business-as-usual is outright failure of national grids to ensure reliable power or to make electricity a ubiquitous resource. As a result, nearly 80% of businesses across the continent experience significant power reliability issues, with just over 50% investing in onsite diesel generators as backup.
In short, the path to economic development is effectively blocked as there is a clear linear relationship between GDP/capita and electricity consumption. ~70% of electricity consumption comes from industrial and commercial offtakers. For them, lack of electricity reliability means lack of economic output. For the local economy it means reduced formal employment opportunities and low ceilings on household income.
Not only does lack of reliability directly reduce production capability, it decreases willingness for households to connect to the grid at true market prices. In an age where high-income employment across mature economies is increasingly decoupled from physical location (ie Work From Home), millions of Africans lack the very basic resource - electricity - to participate in that new economy despite having the necessary professional skills to do the work.
Compounding the issue, failures by national grid operators and volatile fiscal/monetary policy from governments have discouraged traditional finance from investing in African infrastructure projects. Governments are unable to raise adequate financing on their own and generally rely on project sponsors to raise 100% of project capital. There is now a $30B financing gap between capital available and generation capacity needs across the continent.
The growing physical threat of climate change to aging infrastructure calls for not only a radical rethink of how projects get funded, but also how grids are managed to ensure maximum power availability to all Africans. African Diasporans send ~$50B back to Africa annually, mostly as hand-to-mouth remittances to help pay energy bills, school fees, and basic living expenses. This amount of capital can and should be leveraged to invest in the power grid, and given that it is substantially higher than global Direct Foreign Investment into Africa, a meaningful percentage should be leveraged as formal investment capital to help address the financing gap.
Why? Because economic production potential is heavily dependent on availability of electricity. Yet demand outstrips actual power capacity to such a degree that half of all Africans lack access to reliable power. The very reason we send so much money back home is because the lack of electricity limits the very job creation and formal employment that would allow economic self-sufficiency for the typical African household.
That's where we come in.
Headquartered in Gaborone, Botswana we source projects across southern and eastern Africa focused on utility scale and on-site solar for commercial and industrial energy buyers. To finance the projects, we combine capital from both traditional investors and DeFi investors. DeFi investors purchase NFT's minted to help raise equity for the project. And at the end, we sign long-term power purchase agreements (PPA) with energy buyers that allow us to issue dividends to NFT holders fully backed by the cashflows from that PPA.
Flow of funds for blockchain-based investments
It's a win-win.
Creditworthy commercial, industrial and government power off-takers have access to a reliable source of primary or backup energy at below their current utility rates. Investors generate returns from a cash-flowing real world asset where - due to our strict financial diligence - there is negligible risk of offtaker default and for which there is inelastic demand.
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