France-based global sustainable investment and asset management group Mirova has announced that it is making its first investment in South Africa, a $15-million long-term debt financing arrangement with South African renewable energy development company and independent power producer SolarAfrica Energy.

“We are very excited to enter the South African market and to support SolarAfrica, a major and well-respected player, in its ongoing development,” affirmed Mirova Investments deputy head Rim Azirar. “This investment is perfectly in line with our investment strategy dedicated to energy transition in emerging markets, using blended finance to help increase access to reliable and affordable energy in Africa.”

This investment is part of Mirova’s Gigaton strategy, and is the fifth investment made under this strategy. Gigaton is intended to stimulate access to clean energy and promote climate action in emerging market countries.

“This investment is the beginning of a partnership that embodies both companies’ commitment to promoting growth in the local renewable-energy market while making long-term sustainability a reality for more businesses,” highlighted SolarAfrica chief investment officer Charl Alheit. “The transaction serves as one of several successful strategic funding initiatives our team has secured to support our vision of becoming the leading renewable-energy company in South Africa.”

SolarAfrica provides on-site solar energy and battery solutions to commercial and industrial clients, as well as virtual solutions for them (by means of wheeling and electricity trading). All solutions are tailored to the specific needs of the client companies, and serve to cut their electricity costs, increase their energy security, reduce their carbon footprints and ensure their long-term sustainability. The client companies do not have to commit any capital expenditure to these projects.

Since it was founded in 2011, SolarAfrica has financed and delivered more than 204 projects. These have, collectively, saved more than 295 000 t of CO₂-equivalent. Last year, SolarAfrica merged with Pan-African clean energy company Starsight Energy. The company’s network now covers Southern, East and West Africa.