Impact investor provides mezzanine funding to African solar company
Impact investment firm AlphaMundi Group has provided $1 million in mezzanine finance through its AlphaJiri Investment fund to support the growth of REDAVIA in East and West Africa.
REDAVIA is a market leader in solar power for commercial & industrial (C&I) customers in its core markets, providing reliable, low cost and clean energy solutions to businesses active in the real economy (e.g., agrofood processing, manufacturing, hospitality and real estate, utilities, and services). The investment will help REDAVIA scale and support its mission to extend clean energy access in Africa. The investment is AlphaJiri’s first in C&I solar, complementing the fund’s existing renewable energy investments in Amped and SunCulture.
In addition to the $1 million investment by AlphaJiri, the AlphaMundi Foundation has extended a combination of philanthropic funding and a repayable grant to support seven of REDAVIA’s (financially stable) clients in the agricultural sector in Ghana and Kenya that have been impacted by Covid-19. The foundation’s support to REDAVIA has been critical in enabling the company to both: (1) de-risk its asset portfolio and (2) continue its asset portfolio growth during the Covid-19 crisis.
Moreover, Open Capital Advisors provided AlphaMundi due diligence support under USAID’s Kenya Investment Mechanism Program that helped inform AlphaJiri’s assessment of REDAVIA. Open Capital’s work included an analysis of the competitive landscape in the C&I solar sector, covering key stakeholders, business models, technical offerings, customer preferences, and dynamics on pricing and battery storage, among others.
Judith Santbergen, senior investment manager at AlphaMundi said, “REDAVIA has a unique proposition in the market through the modularity of its solar systems and financing offer that provides access to reliable, affordable, clean power to local businesses. We are excited to contribute to sustainable economic growth through this investment.”
Erwin Spolders, founder and CEO of REDAVIA, further stated, “We are very excited to partner with AlphaMundi to scale REDAVIA’s business and bring affordable, clean energy to more businesses in East and West Africa to help them succeed and generate wealth in their communities.”
Are you seeking private equity or venture capital investment to grow your company? Africa Private Equity News now offers you the opportunity to connect with investors backing African businesses. Contact us at editor@africaprivateequitynews.com for our rate card and more information.