Mergence Investment Managers has announced an additional R60m investment in Solarise Africa, a sustainable energy solutions company operating across the continent.

The investment was made through the Mergence Infrastructure & Development | Debt Fund.

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 R160m investment closed late last year and signals strong institutional support for clean energy development at the C&I level.

“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 (pictured).

“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.”

Sakkie van Wijk, Co-Founder and COO of Solarise Africa, said: “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.”

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.