Solarise Africa, a pan-African energy-as-a-service company, has secured R60m (approximately $3.3m) in follow-on funding from South African asset manager Mergence Investment Managers. The capital will be used to accelerate the rollout of solar energy solutions for commercial and industrial (C&I) businesses struggling with South Africa’s persistent power outages.
Why it matters
South Africa’s economy has been hampered for years by “loadshedding” — scheduled power cuts implemented by the state-owned utility Eskom due to an inability to meet demand. This has forced businesses to seek alternative, reliable power sources to maintain operations, creating a significant market for decentralised energy providers like Solarise Africa. This investment underscores the growing role of private capital in plugging the continent’s energy infrastructure gaps.
The details
The investment is structured as a mezzanine debt facility provided through preference shares. It builds on a previous R160m (around $9m) debt deal between the two companies concluded in late 2024, signalling sustained investor confidence in Solarise Africa’s model.
Solarise Africa specialises in providing financed solar PV and hybrid energy systems. Its model allows businesses to adopt solar power without large upfront capital expenditure, instead paying a monthly fee for clean, reliable energy. This lowers the barrier to entry for companies wanting to escape the unreliable national grid and reduce their carbon footprint.
For Mergence, the deal is a bet on the continued growth and resilience of the C&I renewable sector.
“Our additional investment in Solarise Africa reflects our belief in the resilience of the C&I renewable energy sector and in Solarise Africa’s ability to deliver on its promise,” said Mosa Molebatsi, Head of Private Debt at Mergence Investment Managers. “We are proud to back a platform that is enabling cleaner, more reliable energy for businesses, while contributing to South Africa’s climate and economic goals.”
What’s next?
The new funding will be deployed directly into building and installing more solar PV and hybrid energy systems for a pipeline of C&I clients across South Africa. The company says the capital will enable it to expand its reach and speed up project implementation.
“This follow-on investment speaks volumes about their confidence in our strategy, performance, and future prospects,” said Sakkie van Wijk, Co-founder and Chief Operating Officer of Solarise Africa. “With this funding, we will be able to extend our reach and accelerate the implementation of high-impact energy projects for businesses across South Africa.”
The deal highlights a growing trend across Africa where private capital, particularly through specialised debt instruments, is increasingly stepping in to fund critical climate and energy infrastructure that may have traditionally relied on slower-moving public finance.