Mergence and Solarise Africa announce R160 million investment in South Africa

Solarise Africa, a company offering energy services to businesses across Africa, has announced a strategic financing partnership with Mergence Investment Managers, securing an investment of 160 million rand.

This funding will be critical to accelerating the deployment of commercial and industrial (C&I) scale renewable energy solutions across South Africa.

The announcement marks a significant milestone in Solarise Africa’s mission to promote sustainable energy development in the region. The introduction of local debt, as well as the mezzanine facility, will enhance the company’s ability to increase its industry profile and further influence renewable energy adoption.

PSG Capital, a leading financial advisory firm in Africa, played a key role as lead transaction advisor and deal arranger.

Jan Albert Valk, Co-Founder and CEO of Solarise Africa, expressed his enthusiasm for the partnership, stating: “Despite the recent decline in residential solar uptake in 2024, largely due to a reduction in power outages, the C&I solar market in South Africa continues to grow. Businesses continue to invest in renewable energy solutions not only to protect themselves from an unreliable grid, but also to reduce electricity costs and demonstrate their commitment to sustainability and climate action.”

He continued: “This facility allows us to accelerate our growth and reach more businesses that need reliable, clean energy solutions. It is a testament to the growing confidence in renewable energy in South Africa and our role in this transformational journey.”

Mosa Molebatsi, Senior Investment Associate at Mergence Investment Managers, added: “This continued demand makes companies like Solarise Africa an attractive investment option, highlighting the resilience and growth potential of the C&I sector. We are delighted to support Solarise Africa in their expansionary efforts. This partnership reflects our commitment to investing in sustainable projects that deliver both environmental and economic benefits.”

PSG Capital, with support from Viruni Capital Partners, advised on the financing, which will be used primarily to finance the installation and expansion of solar energy systems for commercial and industrial clients, helping to reduce energy costs and carbon footprint while promoting sustainable practices.

Khaya Hlophe-Kunene, Director of PSG Capital, commented on the strategic significance of the agreement, noting: “We are proud to have played a role in facilitating this partnership, which is aligned with our focus on supporting innovative energy solutions in South Africa and the rest of the African continent.”

www.solariseafrica.com

www.mergence.co.za