Mirova’s blended-finance debt fund has made its debut investment in South Africa, funding renewable energy firm SolarAfrica.
The Mirova Gigaton Fund is providing a $15m (€13.5m) loan to SolarAfrica to support the firm’s ongoing commercial and industrial projects and accelerate the growth of its utility-scale initiatives.
Founded in 2011, SolarAfrica has evolved from a focused on-site solar and battery solutions provider to a diversified energy company offering virtual services like wheeling and electricity trading.
Rim Azirar, deputy head of investments at Mirova, said: “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.”
Charl Alheit, SolarAfrica’s CIO, said: “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.”
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