In a significant move aimed at accelerating the digital transformation of Africa’s power sector, UK-based SteamaCo has merged with Nigerian Internet of Things (IoT) energy tech firm Shyft Power Solutions. The merger, consolidates the strengths of both companies in advanced metering and distributed energy solutions, setting the stage for expanded operations across Africa’s rapidly evolving energy landscape.
This merger is further reinforced by a fresh capital injection led by Africa-focused climate technology investors Equator VC, Praetura Ventures, and KawiSafi Ventures. The funding will enable the merged entity to expand its footprint in grid-connected markets and extend its smart energy solutions across new regions, enhancing accessibility and dependability in a continent where energy challenges persist.
SteamaCo, a veteran in energy revenue management with over a decade of experience across 20 African nations, brings its AI-driven metering solutions to the partnership. Its flagship Nimbus Advanced Metering Infrastructure (AMI) system has been instrumental in helping utilities improve network monitoring, detect losses, and optimize customer service. By merging with Shyft Power Solutions, which pioneered FlexView, a cloud-based distributed energy resource management system, the combined company is positioned to create smarter, more efficient infrastructure tailored to Africa’s unique power needs.
Ugwem Eneyo, co-founder and CEO of Shyft Power Solutions, emphasized that the merger aligns with a shared vision to digitize Africa’s energy sector. “Our vision goes beyond delivering cutting-edge technology; it’s about transforming the energy experience of providers and consumers alike. This partnership allows us to leapfrog existing grid limitations, providing access to a more resilient, smarter energy infrastructure,” Eneyo stated.
SteamaCo’s Managing Director, Tom Parkinson, echoed this sentiment, stating, “The combination of our advanced metering technology and Shyft’s local expertise strengthens our ability to meet Africa’s specific energy demands. Together, we can deliver customized solutions that address Africa’s critical energy challenges and support sustainable growth.”
The merger comes at a time when Africa’s energy landscape is at a turning point. Despite its vast energy potential, only half of Nigeria’s 220 million residents, for example, are connected to the national grid, and even grid-connected households experience frequent blackouts. High energy costs and the environmental toll of diesel generators further underscore the need for innovative, sustainable solutions.
By uniting their expertise, SteamaCo and Shyft aim to address this access gap, leveraging distributed energy resources like solar home systems and mini-grids as viable alternatives to grid power. The merged entity’s solutions are designed to enhance operational efficiency, reduce downtime, and support a more reliable power supply.
Equator VC’s Managing Partner, Nijhad Jamal, praised the merger as a “pivotal moment in energy management across Africa.” He added, “This partnership creates a powerhouse capable of driving substantial progress in bridging the energy access gap, enabling communities to access reliable, cleaner power.”
A Milestone for Female-Led Tech and Capital Growth
Shyft Power Solutions has made a unique mark as a female-founded and led African tech company, a rarity in the region’s venture capital ecosystem. With only about 13% of venture capital funding in Africa going to female founders, according to Africa: The Big Deal, the merger stands out for creating a predominantly female-led African management team.
The current merger builds on Shyft’s prior achievements, particularly its significant 2021 funding milestone. In that year, Shyft raised an additional $3.1 million, led by the SoftBank Vision Fund’s Emerge Program and Total Carbon Neutrality Ventures, bringing its total seed funding to $3.8 million. This funding empowered Shyft to double its team in West Africa and focus on expanding its AI and data analytics capabilities. Since then, Shyft has successfully developed data-driven algorithms that allow operators to monitor, automate, and optimize power sources, reducing operational costs by as much as 57% in some cases.
“Our earlier funding from SoftBank and Total Carbon Neutrality Ventures was a turning point,” Eneyo reflected. “It enabled us to advance our mission of scaling reliable, affordable, and cleaner energy solutions across emerging markets. This merger with SteamaCo takes our mission even further, enhancing our ability to support Africa’s transition to sustainable energy at scale.”
The merger of SteamaCo and Shyft Power Solutions is expected to yield substantial job creation as the combined company scales its operations. The executive teams of both companies will remain in place, working together to harness their complementary expertise.
With the backing of leading climate-focused investors and a commitment to sustainable growth, SteamaCo and Shyft are well-positioned to drive digital transformation across Africa’s energy markets. As Eneyo summarized, “Power access is fundamental to economic advancement and sustainable development. By building intelligent, resilient infrastructure, we’re setting the stage for smart cities, sustainable communities, and a cleaner future.”
This partnership represents more than just a business merger; it symbolizes a concerted effort to address Africa’s longstanding energy challenges and set a precedent for innovation in the sector. The merged entity, supported by Equator, Praetura Ventures, and KawiSafi Ventures, aims to bring about a new era of reliable, data-driven power management that could be a game-changer for communities across Africa.