Follow-on mezzanine funding reflects continued confidence in Solarise Africa’s growth and the resilience of the C&I renewable energy sector
FOR IMMEDIATE RELEASE
Johannesburg, 30 July 2025 – Mergence Investment Managers has announced an additional R60 million investment in Solarise Africa, a leading sustainable energy solutions company operating across the continent. The latest funding, structured as a mezzanine facility through preference shares, will support the further roll-out of Commercial & Industrial (C&I) scale renewable energy solutions across South Africa.
This follow-on investment underscores Mergence’s continued confidence in Solarise Africa’s growth trajectory and impact in the renewable energy sector. It follows a R160 million investment closed late last year and signals strong institutional support for clean energy development at the C&I level.
Sakkie van Wijk, Co-Founder and COO of Solarise Africa, welcomed the investment, stating: “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. 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.”
“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.”
The deal was advised on by PSG Capital, which has worked 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.”
Unlike the previous facility, which included both senior and mezzanine components, this latest round is exclusively a mezzanine facility, demonstrating Solarise Africa’s strengthened capital structure following the successful refinancing of senior debt late last year.
The new capital will support the deployment of additional solar PV and hybrid energy systems across a diverse portfolio of commercial and industrial clients, helping to reduce electricity costs, improve energy reliability, and contribute to a lower-carbon economy.
Solarise Africa 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, thereby reinforcing its position as a leading provider of sustainable energy solutions across the continent. By bridging finance, technology, and infrastructure, the company continues to power African businesses towards a cleaner, brighter future.
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More about Mergence Investment Managers
Mergence Investment Managers is a diversified, majority black-owned and managed investment firm with a strong 21-year track record. We are the only black-owned asset manager in South Africa offering both public and private market capabilities – a unique position that enables us to deliver holistic, long-term value to institutional investors.
Our investment offering spans listed equity, fixed income and multi-asset, as well as unlisted infrastructure, private debt and private equity – with a strong emphasis on sustainability, impact and developmental outcomes.
Headquartered in South Africa with operations in Namibia and Lesotho, Mergence is expanding its footprint across the continent, driven by a vision to enable inclusive economic growth and long-term social security.
About Solarise Africa
Solarise Africa is a pan-African sustainable energy solutions company. Our purpose is to drive Africa’s transition from fossil fuels to a cleaner, more reliable, and cost-effective renewable energy future. By pioneering distributed energy solutions, we enable businesses to overcome the challenges of unstable and expensive grid systems, unlocking economic growth, job creation, and environmental sustainability across the continent.
About PSG Capital
PSG Capital is a Pan-African independent, multi-award winning firm providing the suite of corporate finance, investment banking and advisory services to a broad spectrum of clients.