Investment firm Mergence Investment Managers has announced an additional R60 million investment in Solarise Africa, a provider of sustainable energy solutions across the continent. The funding, structured as a mezzanine facility through preference shares, will support the expansion of Commercial & Industrial (C&I) renewable energy projects in South Africa.
This latest investment follows Mergence’s R160 million commitment to Solarise Africa late last year. Solarise noted that the follow-on funding reflects Mergence’s confidence in its growth and impact in renewables, reinforcing strong institutional support for C&I clean energy projects.
“We are honoured by the continued support from Mergence. This follow-on investment speaks volumes about their confidence in our strategy, performance, and future prospects,” said Sakkie Van Wijk, Co-Founder and COO 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,” added Van Wijk.
Mergence investment to boost Solarise’s expansion ambitions
Solarise Africa says it is on track to reach its target of 28 MWp of installed capacity in South Africa by the end of the year, and its objective to reach 200 MW by 2030 across Africa. This investment will enable the company to finance its renewable energy portfolio expansion goals.
“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.”
PSG Capital, a pan-African independent advisory firm, advised on the deal, working closely with both parties to structure and facilitate the investment.
“We are proud to have played a role in facilitating this follow-on investment, which builds on the solid foundation laid last year”, said Mikayla Barker, Corporate Financier at PSG Capital. “Supporting innovative and sustainable energy solutions remains a strategic focus for us, both in South Africa and across the African continent.”
Solarise noted that unlike its previous blended senior-mezzanine facility, this latest round is purely mezzanine financing – reflecting its stronger capital structure after successfully refinancing senior debt last year.
The investment will fund new solar PV and hybrid energy systems for C&I clients, cutting electricity costs, boosting energy security, and supporting South Africa’s transition to cleaner energy.
