Mergence and Scalar launch Africa Decarbonisation Fund I
$150 million private equity fund to finance clean energy and digital infrastructure in Southern Africa.
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Scalar International and Mergence Investment Managers have announced the launch of a $150 million private equity fund to finance clean energy and digital infrastructure in Southern Africa.
The Africa Decarbonisation Fund I will back energy-efficient and decarbonisation initiatives in the commercial and industrial sector.
The fund’s pipeline is focused on the data centre and manufacturing industries, which have faced a 40% drop in grid reliability due to their dependence on the regional energy pool. Most Southern African Development Community (SADC) countries source electricity from the Southern African Power Pool, which draws around 40% of its power from hydro and 50% from coal.
Some target investment areas include:
On-site power generation
Critical infrastructure utilities
Smart grid technology
Manufacturing energy efficiency
Digital infrastructure energy
Industrial energy storage, EV, battery storage
Enterprise on-site electric vehicle infrastructure
Commercial energy efficiency (equipment retrofit)
Blockchain/AI infrastructure that supports digital transformation
Aggregated virtual solar power purchase agreements
Semoli Mokhanoi, chief commercial officer at Mergence Investment Managers, says: “We make a powerful partnership with Scalar. The teams have more than five years of collaboration and 20 years of experience in advising, modelling and structuring infrastructure transactions. At Mergence we have deep experience in private markets investing in challenging geographies, including in renewable energy, water, housing, transport, digital connectivity, property and health.”
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