The majority of Solarise Africa’s operations are in Kenya, and the company has secured $3 million from EDFI ElectriFI to develop there.
Solarise Africa is an all-African provider of energy as a service with clever financing alternatives.
Solarise Africa, which has operations in Kenya, South Africa, Uganda, and Rwanda, engages closely with partners to offer a variety of specialized financial solutions. The company works with a carefully chosen set of renewable energy solution providers.
Solarise Africa appreciates the confidence EDFI ElectriFi continues to place in us with this third investment, says Jan-Albert Valk, Co-Founder and CEO. With the money, we can grow our staff even further in an effort to bring solar energy to more companies and promote the use of sustainable energy across Africa.
This is the third EDFI ElectriFi investment made by Solarise Africa. The Facility for Energy Inclusion (FEI), managed by Lion’s Head, has provided the company with a $33.4 million facility, the largest C&I debt raise in Africa to date, to enable the company expand throughout Africa and strengthen its position in Kenya’s solar sector. Of the total, FEI contributed USD 21.4 million, Oikocredit USD 7 million, and Lion’s Head managed fund, AfricaGoGreen Fund “AGG,” USD 5 million.
The FEI supports mini-grids, captive power projects, commercial and industrial enterprises, and small-scale independent power producers who supply electricity to the grid. The African Development Bank established FEI as a part of its New Deal for Africa program.
Along with the investment from the AfDB, FEI also obtained a loan commitment from the Austrian Development Bank and equity money from the German Federal Ministry for Economic Cooperation and Development via KfW and Norfund. Additionally, the AfDB made an investment on behalf of the European Commission and the Clean Technology Fund.
“EDFI ElectriFI is pleased to strengthen its cooperation with Solarise Africa and to support the service platform in growing its asset portfolio in Kenya. EDFI ElectriFI is a current shareholder holding shares under the Series A and the Series B rounds. According to Geraldine Crosset, ElectriFI Senior Investment Officer at EDFI MC, “We anticipate that this investment will serve as a funding bridge until the company finishes its future equity transaction.
An impact investment facility supported by the EU, EDFI ElectriFI funds early-stage private firms and projects with a focus on new or upgraded electricity connections as well as generation capacity from sustainable energy sources in developing markets.
Although Solarise Africa has activities in Kenya, South Africa, Uganda, and Rwanda, the majority of this funding will go to Kenya, where its operations are concentrated. Kenya’s ElectriFI Country Window was created in collaboration with host governments and EU Delegations. It makes a significant contribution to the Team Europe strategy for Kenya’s national electrification. In the deal, Solarise Africa received financial advice only from Viruni Capital Partners.
In order to continue its growth throughout Africa, Solarise Africa last year obtained EUR5 million (US$5.9 million) in debt funding from Trine, a Swedish impact investing platform, as well as an additional £1 million from UK crowdfunders divided with Energise Africa.