- Mergence Investment Managers has entered into a strategic funding partnership with solar energy company Solarise Africa.
- Ongoing demand makes companies like Solarise Africa an attractive investment option, highlighting the resilience and growth potential of the C&I sector.
Mergence Investment Managers has entered into a strategic funding partnership with solar energy company Solarise Africa, providing R160 Million in investment to advance the deployment of commercial and industrial (C&I) scale renewable energy solutions across South Africa.
The companies say the funding will primarily be used to finance the installation and expansion of solar energy systems for C&I clients, helping to reduce energy costs and carbon footprints while promoting sustainable practices.
Solarise Africa notes that introducing a local debt and mezzanine facility will enhance its ability to increase its industry profile and further its impact on renewable energy adoption. It is a milestone in its mission to promote sustainable energy development in the region.
“Despite a recent decline in residential solar uptake, largely owing to a reduction in load shedding, the C&I solar market in South Africa continues to thrive,” says Solarise Africa co-founder and CEO Jan Albert Valk.
He adds that 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.
“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,” he avers.
According to Mergence Investment Managers senior investment associate Mosa Molebatsi, 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 provide environmental and economic benefits,” she says. Meanwhile, corporate finance advisory firm PSG Capital played an instrumental role as the lead transaction adviser and arranger. PSG Capital, supported by Viruni Capital Partners, advised on acquiring the funding.
“Facilitating this partnership aligns with our focus on supporting innovative energy solutions in South Africa and the rest of the African continent,” says PSG Capital director Khaya Hlophe-Kunene