Solarise Africa, an energy-as-a-service company for businesses across Africa, has secured a R160 million investment from Mergence Investment Managers.
In a statement, Solarise Africa says this funding will be instrumental in advancing the deployment of commercial and industrial-scale (C&I) renewable energy solutions across South Africa.
It notes the announcement marks a milestone in Solarise Africa’s mission to promote sustainable energy development within the region.
The company believes the introduction of a local debt and mezzanine facility will enhance its ability to increase its industry profile and further its impact on renewable energy adoption.
Jan Albert Valk, co-founder and CEO of Solarise Africa, comments: “Despite a decline in residential solar uptake in 2024, largely due to a reduction in load-shedding, the C&I solar market in South Africa continues to thrive. Businesses continue to invest in renewable energy solutions not only to safeguard against an unreliable grid, but also to lower electricity costs and demonstrate a commitment to sustainability and climate action.
“This facility allows us to accelerate our growth and reach more businesses in need of reliable, clean energy solutions. It’s a testament to the growing confidence in renewable energy in South Africa and our role in this transformative journey.”
Mosa Molebatsi, senior investment associate at Mergence Investment Managers, adds: “This ongoing demand makes companies like Solarise Africa an attractive investment option, highlighting the resilience and growth potential of the C&I sector.
“We are excited to support Solarise Africa in its expansion efforts. This partnership reflects our commitment to investing in sustainable projects that provide both environmental and economic benefits.”
PSG Capital, a corporate finance advisory firm in Africa, supported by Viruni Capital Partners, advised on the acquisition of the funding.
The funds will primarily be used to finance the installation and expansion of solar energy systems for commercial and industrial clients, helping to reduce energy costs and carbon footprints, while promoting sustainable practices.
Khaya Hlophe-Kunene, director at PSG Capital, says: “We are proud to have played a role in facilitating this partnership, which aligns with our focus on supporting innovative energy solutions in South Africa and the rest of the African continent.”
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