Mergence, Solarise Africa Invest R160 Million In South Africa

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Solarise Africa, an Energy-as-a-Service company, has announced a strategic partnership with Mergence Investment Managers, securing an R160 million investment to expand Commercial & Industrial (C&I) renewable energy solutions across South Africa.

The introduction of local debt and a mezzanine facility will enhance the company’s ability to increase its industry presence and impact renewable energy adoption. PSG Capital, a corporate finance advisory firm, acted as the lead transaction advisor and arranger.

Jan Albert Valk, Co-Founder and Chief Executive Officer (CEO) of Solarise Africa, expressed his enthusiasm for the partnership: “Despite a recent decline in residential solar uptake in 2024, largely due to reduced load-shedding, the C&I solar market in South Africa continues to thrive. Businesses are investing in renewable energy not only to safeguard against an unreliable grid but also to lower electricity costs and demonstrate a commitment to sustainability and climate action.”

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He added, “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, highlighted the attractiveness of Solarise Africa as an investment, citing the resilience and growth potential of the commercial and Industrial (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 both environmental and economic benefits,” Molebatsi said.

PSG Capital, supported by Viruni Capital Partners, advised on the acquisition of the funding, which will primarily finance the installation and expansion of solar energy systems for commercial and industrial clients, helping to reduce energy costs and carbon footprints while promoting sustainable practices.

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Khaya Hlophe-Kunene, Director at PSG Capital, emphasized the strategic importance of the deal: “We are proud to have played a role in facilitating this partnership, which aligns with our focus on supporting innovative energy solutions in South Africa and across the African continent.”