Mergence Investment Managers in South African solar deal
Solarise Africa, an energy-as-a-service company, has received backing from Mergence Investment Managers.
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Solarise Africa, an energy-as-a-service company for businesses across Africa, has announced a R160 million (about $9 million) investment from Mergence Investment Managers.
The funding will primarily be used to finance the installation and expansion of solar energy systems for commercial and industrial (C&I) clients in South Africa.
The introduction of a local debt, as well as mezzanine facility, will enhance the company's ability to increase its industry profile and further its impact on renewable energy adoption.
PSG Capital was the lead transaction advisor and arranger.
Jan Albert Valk, co-founder and CEO of Solarise Africa, said: "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."
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