Discover the Visionary Who Rejected $1.5 Million to Create Africa’s Rapidly Growing Enterprise

From Failure to Opportunity

For Tonye Irims, the founder of WiSolar, the journey into entrepreneurship has been anything but smooth. His path is littered with setbacks, but those experiences shaped his resilience. Before launching WiSolar in 2016, Irims explored the startup world with two earlier ventures: WiMobile in 2006 and FriendsChip, a Texas-based social payments platform in 2011. While both were not successful, they became pivotal learning experiences. Failure, he discovered, can be the greatest teacher.

The backdrop of South Africa during this time was a crucible of opportunity. In the grip of an energy crisis, residents faced routine blackouts, soaring electricity prices, and an unreliable grid. The Department of Trade and Industry estimated that the economy lost around $46 billion between 2021 and 2024 due to a series of shocks. In a nation that was Africa’s most industrialized but heavily dependent on coal, the shift towards renewable energy was just a budding idea.

Irims saw a gap in the market; he recognized a pressing need and acted swiftly. In a climate of uncertainty, he aimed to establish a new narrative around energy access.

A Fresh Take on Solar Power

Enter WiSolar: a digital solar company offering a novel payment model, allowing residents of South Africa and Nigeria to pay for solar power as they use it. Through a cleverly designed power purchase agreement (PPA), WiSolar installs and manages solar systems in customers’ homes. Customers simply purchase power by the kilowatt-hour through an app, like topping up mobile airtime. It’s this simplicity that captured the attention of many in underserved populations, where reliable energy is often a luxury.

“This way, people can get solar power without paying anything upfront,” Irims shared in an interview with Business Insider Africa. The model breathed new life into energy access, but the road wasn’t without its challenges.

“We had a hard time convincing people to believe in us,” Irims recounted. “We were operating on nearly zero capital, struggling to educate customers about how solar electricity works.” It became so tough at one point that he even contemplated selling the business. “No one thought it was worth anything yet.”

However, the turning point came in 2018 with a small seed fund of approximately R60,000 ($4,000), which allowed him to travel to Shenzhen, China. There, he learned about solar technology and forged vital supplier relationships that would lay the foundation for his company’s future.

Fast forward to 2023, WiSolar faced a tempting offer from South Africa’s Industrial Development Corporation (IDC) – a $1.5 million loan. Irims, however, chose to walk away, believing the terms would stifle growth and compromise the core values of his company. The IDC’s tight conditions came with a due date for drawdown, hefty repayment terms, and burdensome disclosure requirements, which didn’t align with his vision.

For many startups, especially in Africa, turning down funding might feel like a reckless decision. Capital is often scarce, especially in industries like clean energy. Yet, Irims stood firm, believing that the wrong kind of money could be more damaging than a lack of it. “If an investor is only looking for quick returns, that’s a red flag. We need partners with a long-term view who understand the broader social impacts,” he emphasized.

“They wanted too much,” he reflected. “Our intellectual property matters deeply to us. If we sense that an investor is only interested in their financial gain, that’s not the kind of partnership we’re willing to pursue.”

Who is an Ideal Investor?

The essence of a good investor, according to Irims, transcends mere capital. They bring vision, access, and most importantly, trust. WiSolar’s quest for funding remains a challenge—not due to a lack of available capital, but because finding the right type of investment is surprisingly rare.

“Finding partners who align with our mission and values is tough,” he noted. “Many funds simply do not understand what we are trying to achieve.”

Thriving Against the Odds

Rejecting the IDC deal didn’t halt WiSolar’s momentum. Today, it operates in both South Africa and Nigeria, rapidly expanding its footprint through a blend of business-to-business and residential offerings. Last year alone, the company secured $9 million in revolving credit from Chinese institutions to support its Climate Zero Initiative aimed at deploying solar energy across ten Nigerian states.

Recognized as one of Africa’s fastest-growing companies for two consecutive years by the Financial Times and Statista, WiSolar continues to defy the odds.

Irims offers sage advice for entrepreneurs contemplating giving up: “It takes a heart of steel. You’ll encounter doubts, rejections, and critics, even from those who mean well. Knowing who to listen to is crucial.” His ultimate secret to success? “Focus on building one thing well before diversifying. A single-minded focus often yields the best results.”

With tales of resilience and learned wisdom, Irims exemplifies how the journey through failure can ultimately illuminate pathways to transformative opportunities in the world of energy.