Solarise Africa, the energy-as-a-service company for businesses across Africa, has announced a funding partnership with Mergence Investment Managers, securing a $8.9 million (R160 million) investment.
This funding will be instrumental in advancing the deployment of Commercial & Industrial (C&I) scale renewable energy solutions across South Africa.
Introducing local debt and a mezzanine facility will enhance the company’s ability to increase its industry profile and further its impact on renewable energy adoption. PSG Capital, a corporate finance advisory firm in Africa, played an instrumental role as the lead transaction advisor and arranger.
Jan Albert Valk, Co-Founder and CEO of Solarise Africa, expressed his enthusiasm for the partnership, stating, “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 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.”
He continued, “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, added: “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 their expansion efforts. This partnership reflects our commitment to investing in sustainable projects that provides both environmental and economic benefits.”
PSG Capital, supported by Viruni Capital Partners, advised on the acquisition of the funding which 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 commented on 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.”
