Solarise Africa, a pan-African Energy-as-a-Service company with smart financing solutions, has received $3 million from EDFI ElectriFI to expand its operations in Kenya where most of its operations take place.
With operations across Kenya, South Africa, Uganda and Rwanda, Solarise Africa works with a selected group of renewable energy solution companies and collaborates very closely with partners to provide a range of tailor-made financial solutions.
According to Jan-Albert Valk, Co-Founder and CEO, Solarise Africa, “Solarise Africa appreciates the trust EDFI ElectriFi continues to place in us with this third investment. With the funds, we can further expand our team and hope to make solar energy a reality for more businesses and to help drive renewable energy adoption on the continent.“
This is Solarise Africa’s third EDFI ElectriFi investment. Just recently, the firm received a $33.4 Million facility, the largest C&I debt raise in Africa to date from Lion’s Head managed fund, the Facility for Energy Inclusion (FEI) to help the firm to solidify its position in Kenya’s solar market and expand across Africa. FEI provided USD 21.4 million of the total amount while Oikocredit contributed USD 7 million and Lion’s Head managed fund, AfricaGoGreen Fund “AGG”, USD 5 million.
The FEI supports small-scale independent power producers delivering power to the grid, mini-grids, commercial and industrial and captive power projects. FEI was set up by the African Development Bank as part of its New Deal for Africa initiative. In addition to the investment by the AfDB, FEI received equity funding from the German Federal Ministry for Economic Cooperation and Development through KfW and Norfund and a loan commitment from the Austrian Development Bank. The AfDB also invested on behalf of the Clean Technology Fund and the European Commission.
“As an existing shareholder holding shares under the Series A and the Series B rounds, EDFI ElectriFI is proud to reinforce its partnership with Solarise Africa and to support the service platform to grow its assets portfolio in Kenya. We expect this investment to bridge the funding needs until the company closes its upcoming equity round” explained Geraldine Crosset, ElectriFI Senior Investment Officer at EDFI MC.
EDFI ElectriFI is an EU-funded impact investment facility, financing early-stage private companies and projects, focusing on new/improved electricity connections as well as on generation capacity from sustainable energy sources in emerging markets.
While Solarise Africa has operations across Kenya, South Africa, Uganda and Rwanda, this financing is allocated to Kenya, where most of its operations take place. The ElectriFI Country Window for Kenya is developed in partnership with EU Delegations and host governments. It notably contributes to the Kenya National Electrification Strategy in a Team Europe approach. Viruni Capital Partners acted as the sole financial advisor to Solarise Africa on the transaction.
One year ago, Solarise Africa secured EUR5 million (US$5.9 million) in debt financing from Trine, a Swedish impact investment platform, to help it continue to expand across Africa and another £1 million from crowdfunders in the UK split with Energise Africa.