Solarise Africa, a leading Energy-as-a-Service provider across Africa, has announced a strategic funding partnership with Mergence Investment Managers, securing an R160 million investment. This funding will accelerate the deployment of Commercial & Industrial (C&I) scale renewable energy solutions throughout South Africa, significantly advancing the region’s renewable energy adoption.
This partnership marks a significant milestone for Solarise Africa in its mission to foster sustainable energy development in the region. The introduction of a local debt and mezzanine facility will enable the company to expand its industry profile and enhance its impact on renewable energy uptake.
PSG Capital, a prominent corporate finance advisory firm in Africa, served as the lead transaction advisor and arranger for the deal, with additional support from Viruni Capital Partners.
Jan Albert Valk, Co-Founder and CEO of Solarise Africa, expressed his excitement over the partnership, “Despite a recent 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 are increasingly investing in renewable energy solutions to mitigate against an unreliable grid, reduce 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, commented on the deal, “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.”
Khaya Hlophe-Kunene, Director at PSG Capital, also emphasized the strategic importance of the deal, noting, “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.”
The funding 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 across South Africa.
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