Mirova’s Gigaton strategy secures a USD 15 million investment in long-term debt financing with SolarAfrica, a leading renewable energy developer and Independent Power Producer based in Centurion, South Africa.
This senior secured facility stands as Gigaton’s first investment in South Africa.
This deal is the strategy’s fifth investment to date.
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.
Over a decade after its establishment, SolarAfrica has grown significantly, having delivered and financed more than 204 projects that have collectively saved over 295,000 tonnes in CO2eq1. In 2023, the company achieved another milestone by successfully merging with Starsight Energy – a leading pan-African clean energy solutions provider – thus creating a powerhouse spanning Eastern, Southern and Western Africa.
Mirova’s Gigaton strategy aims to accelerate clean energy access and climate action in emerging markets. This investment will allow SolarAfrica to continue its (C&I) activities while expanding the scale of its utility-size projects.
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.
Charl Alheit, Chief Investment Officer at SolarAfrica
We are very excited to enter the South African market and to support SolarAfrica, a major and well-respected player, in its ongoing development. 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.
Rim Azirar, Deputy Head of Investments at Mirova