Asset management firm Mergence Investment Managers has announced an additional R60-million investment in renewable-energy company Solarise Africa.

The latest funding, structured as a mezzanine facility through preference shares, will support the further roll-out of commercial- and industrial-scale renewable-energy solutions across South Africa, Mergence says.

This follow-on investment underscores the firm’s continued confidence in Solarise Africa’s growth trajectory and impact in the renewable-energy sector, it notes.

The investment follows a R160-million investment closed late in 2024 and signals strong institutional support for clean energy development at the commercial and industrial level.

Further, unlike the previous facility that included senior and mezzanine components, this latest round is exclusively a mezzanine facility, which demonstrates Solarise Africa’s strengthened capital structure following the successful refinancing of its senior debt in late 2024, Mergence says.

The new capital will support the deployment of additional solar PV and hybrid energy systems across a diverse portfolio of commercial and industrial clients, thereby helping to reduce electricity costs, improve energy reliability and contribute to a lower-carbon economy.

“Our additional investment in Solarise Africa reflects our belief in the resilience of the commercial and industrial renewable-energy sector and in Solarise Africa’s ability to deliver on its promise,” says Mergence Investment Managers private debt head Mosa Molebatsi.

“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,” she adds.

Solarise Africa is on track to reach its target of 28 MW of installed capacity in South Africa by the end of this year and its objective to reach 200 MW by 2030 across Africa, which will reinforce its position as a provider of sustainable energy solutions across the continent.

Solarise Africa co-founder and COO Sakkie van Wijk welcomes the investment.

“This follow-on investment speaks volumes about Mergence's 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,” he says.