Solarise Africa

ElectriFI financed Solarise Africa through several investment rounds. This company provides tailor-made finance or rental solutions for captive solar installations to commercial & industrial customers in Kenya and South Africa.

Project overview

ElectriFI invested USD 0.5 million equity and USD 1.25 million mezzanine loan to build and finance a portfolio of 6 MW of captive solar PV systems in South Africa and Kenya as a Series A.

As a follow on investment ElectriFI committed USD 2.5m of mezzanine notes to support the extension of Solarise Africa’s existing portfolio in South Africa and Kenya.

ElectriFI invested for the third time in Solarise Africa by signing a USD 3m loan earmarked to finance the OPEX incurred by the company to grow its assets portfolio in Kenya. This investment would bridge the funding needs until the company closes it series C equity round expected by end of 2023.

Solarise Africa is a greenfield company that provides tailor made finance or rental solutions for captive solar installations and other renewable energy and energy savings assets to selected commercial and industrial (‘C&I’) sectors (i.e. educational institutions, agro-foods processing, manufacturing, real estate, etc.) of the Kenyan and South African economies.

Series A – investment round in April 2019, with a USD 1.65 million equity and quasi-equity, together with Energy Access Venture.
Series B – additional USD 2.5m, series B, to support its existing portfolio extension in South Africa and Kenya. The investment is expected to create around 134k indirect connections to electricity, employ 21 staff, and create 297 indirect jobs by 2023.
In December 2022, through CW II Kenya, ElectriFI invested USD 3m to supply Kenya’s commercial and industrial sector with solar energy.

Details of the transactions:

Series A:

• Contract signature date: April 2019
• Countries: Kenya and South Africa
• Total ElectriFI financing: USD 1.65m (Quasi equity USD 1.25 million (equivalent EUR 1 171 948) and USD 0.5 million (equivalent EUR 351 494) equity

Series B:

• Contract signature date: July 2020
• Countries: Kenya and South Africa
• Total ElectriFI financing: USD 2.5m

Quasi equity of mezzanine notes (USD 0.5 m (equivalent EUR 468 779) convertible redeemable shares and USD 2 million (equivalent EUR 1 875 117) non-convertible redeemable shares)

Country Window 2 Kenya:

• Contract signature date: December 2020
• Countries: Kenya and South Africa
• Total ElectriFI financing: USD 3m (equivalent EUR 2 775 575) Junior debt

Funding objective

EDFI ElectriFI is considering providing a USD 3m term loan to Solarise Africa Kenya OpCo Ltd earmarked to finance the OPEX incurred by the company to grow its assets portfolio in Kenya. This investment would bridge the funding needs until the company closes it series C equity round expected by end of 2023.

Investment rationale

ElectriFI is supportive of Solarise business model as it supplements electricity from the national grid and diesel generator while bringing high-quality, stable, low cost, clean energy to C&I customers.

Subsequent investments are supported by the fact that we are an existing shareholder having subscribed into the Series A and B equity rounds, its additionality, a realistic business plan, the expected impact and the catalytic impact of ElectriFI’s investment which is required to sustain the development of the business and secure a successful
Series C equity round.

Read more:

• Solarise Africa | ElectriFI
• EDFI ElectriFI concludes follow-on investment in Solarise Africa for further market expansion | ElectriFI
• Shining Light on Solarise Africa: An Interview with the Co-founders | ElectriFI
• Solarise Africa receives USD 3 m investment from EDFI ElectriFI to expand operations in Kenya. | ElectriFI
• Solarise Africa – Unlocking possibilities