Senegal -Leukelé, providing and promoting solar-based solutions for people with limited power means in Senegal

Already collected € 8.125
Searched budget € 20.500
Origin
ST4A Senegal 2021
Location
Diamniadio, Senegal
Theme
Energie
Repayment period
4 years

The company

Leukelé is a scale-up project for the distribution and manufacture of solar power generation equipment in Diamniadio, Senegal.
Leukelé aims to provide equipment for people with limited means in rural areas and solar pumps for small farmers.
The company's ambition is to create a well-known brand of its own and also to gradually assemble equipment for the African market.
 

The business project

Leukelé has been a supplier and installer of solar-based solutions to households, farmers and SMEs since 2018, in the form of an EIG, and currently as a limited liability company (formed on 2 May 2022, pending publication). Products include domestic photovoltaic power kits, solar pumps and larger installations especially for small and medium sized businesses. Services include engineering of larger photovoltaic installations and installation, servicing and maintenance of electrical systems for domestic, commercial, industrial and hydro use.

With its own metal construction workshop, the company offers services for the construction of panel supports, solar street lights and other types of metal construction projects.

The company sells its products and services in the region around Dakar, along the main axes of economic development.

Why OVO believes in this project

The project is based on a first positive experience of almost three years. The turnover is substantial (more than 500 000€ in year one, calculated from September 2022).
Profitability is very good. Gross margin of 22% - 24% and net profit 9%.
Sales forecasts are based on the activity of the last two years.
A stress test shows that the plan can cope with difficult situations. A 50% drop in turnover can be absorbed over at least two years. .
An expansion to other parts of the country will be possible as soon as the company has reached a sufficient size
Coaching since November 2021, in the midst of the pandemic, has proved very useful and the Leukelé promoter has clearly made good progress with his project and created his limited company in May 2022.
The Leukelé project forms a very good reference for OVO's activities in Africa. Moreover, the fact that the company is promoted entirely by Senegalese people makes it more attractive on the market, especially as it ensures quality and after-sales service.
 

Requested investment

The scale-up is requesting for €20,50) which will allow for investment in equipment (vehicle and technical equipment).
The OVO loan is requested over 4 years, in order to support cash flow and thus allow for innovation, business development, new investments and new production.
 

Keywords:

  • sustainable
  • profitabl
  • locally made
     

SDG's: 1,5,6,7,8,10,12,17