SA renewable energy developer attracts French investment

Founded in 2011 with a vision to become South Africa’s leading renewable energy enabler, SolarAfrica combines its financial and technical expertise to offer energy solutions designed to reduce electricity costs, provide energy security and improve its customers’ carbon footprint. Starting as one of the only companies in South Africa specialising in Power Purchase Agreements (PPAs), SolarAfrica has expanded its energy offering from on-site solar and battery solutions to virtual solutions such as wheeling and electricity trading. Each solution is tailored to empower commercial and industrial (C&I) businesses with clean, reliable energy solutions that ensure long-term sustainability.

Since it was established in 2011, SolarAfrica has delivered more than 204 renewable energy projects. 

Over a decade after its establishment, SolarAfrica has grown significantly, having delivered and financed more than 204 projects which have collectively saved CO₂e of more than 295 000 tonnes, according to its own calculations. In 2023, the company merged with Starsight Energy – a leading pan-African clean energy solutions provider – to create a powerhouse spanning eastern, southern and western Africa. 

Mirova is a global asset management company dedicated to sustainable investing and an affiliate of Natixis Investment Managers. Headquartered in Paris, it has been active in the energy transition infrastructure sector for 20 years and has financed more than 1 000 projects for a total of over 7.3 GW of potential generation capacity across 48 countries.

Through its Gigaton strategy Mirova aims to accelerate clean energy access and climate action in emerging markets. Its USD 15 million investment in long-term debt financing with SolarAfrica will allow SolarAfrica to continue its C&I activities and expand the size of its utility-scale projects.

Charl Alheit, Chief Investment Officer at SolarAfrica, commented on the deal: “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. 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.”

The senior secured facility stands as Gigaton’s first investment in South Africa. Rim Azirar, Deputy Head of Investments at Mirova, said: “We are excited to enter the South African market and to support SolarAfrica, a major and well-respected player, in its ongoing development. This investment is in line with our investment strategy dedicated to the energy transition in emerging markets, using blended finance to help increase access to reliable and affordable energy in Africa.”

For more information visit: https://solarafrica.com/