SOLARISE Africa, a prominent Energy-as-a-Service provider for businesses throughout Africa, has secured a strategic investment of R160 million (about $9 million) from Mergence Investment Managers. This funding aims to significantly enhance the deployment of Commercial & Industrial (C&I) scale renewable energy solutions across South Africa, marking a crucial step forward in the country’s sustainable energy development.
The investment comes at a pivotal time for Solarise Africa, enabling the company to expand its reach and influence in the renewable energy sector. The introduction of a local debt and mezzanine facility will strengthen Solarise Africa’s industry profile, furthering its mission to promote renewable energy adoption in the region.
The transaction was facilitated by PSG Capital, a leading corporate finance advisory firm in Africa, which played a key role as the lead advisor and arranger.
Jan Albert Valk, Co-Founder and CEO of Solarise Africa, expressed his excitement about the new 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,’ he said. ‘Businesses are increasingly investing in renewable energy solutions, not only to mitigate the risks of an unreliable grid but also to reduce electricity costs and demonstrate a commitment to sustainability and climate action.’
Valk emphasised that the new funding will accelerate Solarise Africa’s growth, allowing the company to provide more businesses with reliable, clean energy solutions. ‘This investment is a testament to the growing confidence in renewable energy in South Africa and our role in this transformative journey,’ he added.
Mosa Molebatsi, Senior Investment Associate at Mergence Investment Managers, highlighted the resilience and growth potential of the C&I sector, noting, ‘This ongoing demand makes companies like Solarise Africa an attractive investment option. We are excited to support Solarise Africa in their expansion efforts, which reflect our commitment to investing in sustainable projects that offer both environmental and economic benefits.’
The funding, secured with the assistance of PSG Capital and supported by Viruni Capital Partners, will primarily be used to finance the installation and expansion of solar energy systems for commercial and industrial clients. These efforts are aimed at reducing energy costs, lowering carbon footprints, and promoting sustainable practices across South Africa.
Khaya Hlophe-Kunene, Director at PSG Capital, commented on the strategic importance of the deal, stating, ‘We are proud to have facilitated this partnership, which aligns with our focus on supporting innovative energy solutions in South Africa and across the African continent.’
This investment signals a strong commitment to advancing renewable energy infrastructure in South Africa, helping to drive the country’s transition towards more sustainable energy sources.
