Baobab Group announced today 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 CEO 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.
Philip Sigwart, CEO of Baobab Group, commented: “We are proud to have supported Baobab+’s impressive journey over the past decade, enabling it to serve more than 425,000 households across its markets in Africa. Baobab+ has consistently provided high-quality renewable energy solutions, empowering both households and entrepreneurs. Our decision to divest is strategically aligned with our vision, enabling Baobab+ to enter its next growth phase while allowing us to concentrate fully on our mission of delivering financial services to small businesses and underserved communities across Africa.”
”With BioLite’s innovation and Norfund’s support, we are entering a new era—scaling with purpose, deepening our local impact, and delivering sustainable energy solutions across Africa. I’m honoured to lead Baobab+ into this next chapter with a team of talented professionals.” stated Kolawole Osinowo, CEO, Baobab+ Group
“We also remain deeply grateful for Baobab Group’s unwavering support over the years; their dedication has been crucial in expanding access to energy and digital solutions for underserved communities,”
“Building on a 6-year close partnership, BioLite is extremely excited to become the new shareholder of Baobab+. This partnership has been in alignment with BioLite’s mission to “Empower people and protect the planet through access to renewable energy”, and we hope to continue on this mission together with Baobab+.
We believe that, by tying BioLite and Baobab+ together, we can achieve both tighter operational efficiencies as well as greater investor confidence, enabling a financially stable growth platform for the future of both businesses.
In addition, BioLite’s carbon finance platform will be more effectively applied in Baobab+ markets, leading to both lower consumer prices and healthy profit margins. Therefore, this transaction will strengthen Baobab+ and enhance its performance in both the medium and long term. BioLite will closely support the Baobab+ operating team to scale the operations, drive profitability, and deliver impact in these key markets.” Stated Jonathan Cedar, CEO of BioLite.
“For Norfund, as a Development Finance Institution and notable investor in the African distributed Energy landscape, this next chapter for the company encompasses a leap forward and further strengthens the strategy implemented when we first invested. We believe backward integration and consolidation are key for ‘Last mile distributors’ long-term success. Norfund will remain a significant minority investor in the Company as it embarks on this new journey,” Stated Birgit Edlefsen, Senior Vice President at Norfund.
Baobab Group as the Seller was advised by Enexus Finance as M&A advisor, Gide Loyrette Nouel as legal advisor and PwC as provider of the Tax VDD.
