Mergence Injects Additional R60 Million into Solarise Africa to Accelerate Renewable Energy Rollout in South Africa

Mergence Investment Managers has deepened its support for the Commercial and Industrial (C&I) renewable energy sector with a follow-on investment of R60 million in Solarise Africa. The funding, structured as a mezzanine facility via preference shares, will aid in the expansion of solar PV and hybrid energy systems across South Africa’s C&I sector.

This fresh capital injection builds on a R160 million investment concluded in late 2024, marking a continued vote of confidence from Mergence in Solarise Africa’s operational model and growth trajectory. The new funding will specifically target high-impact energy projects aimed at reducing electricity costs, enhancing energy reliability, and contributing to South Africa’s climate goals.

“We are honoured by the continued support from Mergence,” said Sakkie van Wijk, Co-Founder and COO of Solarise Africa. “This follow-on investment speaks volumes about their confidence in our strategy, performance, and future prospects.”

Mosa Molebatsi, Head of Private Debt at Mergence Investment Managers, noted that the investment reflects the firm’s belief in the resilience and potential of the C&I renewable energy segment. “We are proud to back a platform that is enabling cleaner, more reliable energy for businesses while contributing to South Africa’s broader economic and environmental objectives,” Molebatsi said.

The deal was facilitated by PSG Capital, which also advised on the previous round. Mikayla Barker, Corporate Financier at PSG Capital, said the transaction signals a continued commitment to supporting scalable energy transition solutions in South Africa and across the continent.

Unlike the previous facility, which included both senior and mezzanine components, this latest round comprises exclusively mezzanine funding—highlighting Solarise Africa’s improved capital position after a successful senior debt refinancing in 2024.

The new investment will help the company reach its target of 28 MWp of installed capacity in South Africa by the end of 2025. Solarise Africa has also set an ambitious goal of achieving 200 MW across the continent by 2030, reinforcing its position as a key player in Africa’s clean energy future.