Why WiSolar Rejected $1.5m IDC Loan, CEO Reveals

South Africa-based innovative pre-paid solar power provider WiSolar has announced plans to roll out utility-scale prepaid solar electricity in a bid to contribute 80 megawatts of solar power to South African homes.

This development is coming on the heels of the company’s rejection of a $1.5 million loan from Industrial Development Corporation. The loan rejection, according to the start-up founder and CEO, Tonye Irims, was based on the suffocating conditions set out in the loan term sheet.

The WiCorp IDC term sheet, which spelled out the conditions for the loan and was sighted exclusively by Business Elites Africa, revealed that the startup, upon acceptance of the loan, agreed to an unlimited scope of unconditional provision of information or documents about the borrower’s trade secrets.

In an exclusive chat with Business Elites Africa, Irims said, “In a country with such a high unemployment rate, one would have thought the focus would be on social impact, non-legacy business growth, green energy job creation, and skills training. Including youth, women, and people with disabilities.

Speaking further, he says the conditions of acceptance will suffocate and compromise the life and purpose of the enterprise. There is poor stakeholder alignment as it is not aligned with the company’s mission, and moreover, there is a flagrant disregard for other stakeholders in the value ecosystem.

WiSolar is an on-demand digital solar company headquartered in South Africa. It was founded in 2016. It is the only company that offers prepaid solar for residential use in South Africa. The company focuses primarily on a power purchase agreement (PPA) business model where WiSolar installs and maintains a solar system in a customer’s home, then sells power to the customer via the app as required per kWh. This business model allows property owners to install solar at no upfront cost.