Founded in 2018, Charm Impact’s mission is to combat the financial exclusion of clean energy entrepreneurs across sub-Saharan Africa who have challenges accessing the financing they need to grow their businesses.
As the leading debt provider of small-ticket transactions (under £350k) in the distributed renewable energy sector, Charm Impact operates as a specialist venture debt investor constructing unique portfolios of high value, high impact investment opportunities across sub-Saharan Africa. Using its proprietary credit risk assessment engine, Charm Impact’s majority African team are specialists in determining risk profiles of early-stage, locally owned, social impact enterprises and crafting the blended finance instruments that are best suited to commercially elevate them.
To date, Charm Impact has empowered change with 33 loans totalling £2.66m, enhancing energy access for over 350,000 people across seven countries. The unique approach involves blending private investor capital, concessional capital and philanthropic funding through its impact investment platform, aiding local entrepreneurs in building a robust commercial credit history.
Charm Impact secured support from PREO in March 2023, receiving a grant to establish a first-loss provisioning pool. This strategic funding will cover potential losses for investors on a portfolio of loans, serving as a powerful incentivisation tactic to attract private investment. By absorbing a percentage of losses, the funding reduces the risk profile of these high impact investments, encouraging investor participation that would otherwise not enter this market. The unused capital from the first-loss pool will be recycled, generating a significant multiplier effect for future projects.
In an 18-month program, Charm Impact aims to disburse five to seven loans with entrepreneurs deploying productive use of energy solutions. The loan offerings range from £10,000 to £350,000, with durations spanning 6 to 36 months. Charm Impact is committed to building a portfolio of at least 85% locally owned enterprises and supporting gender equality by aiming for 40% of funded enterprises to be female-led or owned. This commitment not only fosters local economic development but also promotes a more inclusive and equitable society.
For more information on Charm Impact, visit charmimpact.com