Grid Africa secures $2.8 million to boost solar projects in South Africa

Key Points

• Grid Africa secures R50 million ($2.8 million) from Rifuwo Energy Partners to expand solar energy projects in South Africa.
• The investment aims to shield businesses from rising electricity costs, as Eskom seeks a 36% tariff increase from South Africa's energy regulator.
• Grid Africa’s expansion into Zambia reflects its strategy to address Africa’s energy challenges with innovative, cost-efficient solar solutions.

Grid Africa, a Johannesburg-based solar energy firm, led by Zimbabwean-born entrepreneur Norman Moyo, has raised R50 million ($2.8 million) in equity funding from Rifuwo Energy Partners. The move aims to boost renewable energy projects in South Africa, as the country grapples with an increasingly strained power sector.

The investment comes at a critical juncture, with South Africa bracing for an impending increase in electricity tariffs. Eskom, the state-owned utility, has recently submitted a proposal for a 36 percent tariff hike to NERSA, raising concerns about rising energy costs that could heavily impact businesses. In response, Grid Africa is intensifying its focus on solar projects designed to alleviate the financial burden associated with escalating electricity prices.

Navigating energy costs

"South Africa's shifting energy landscape offers businesses a chance to transition to solar, cutting costs," said Grid Africa CEO Norman Moyo. "With falling prices for solar tech and lithium batteries, we can provide more energy-efficient solutions. Clients can also avoid peak grid charges with peak shaving strategies."

Rifuwo Energy Partners CEO Hope Tshepo Segone said the investment aligns with their goal of advancing a just transition to sustainability. “We’re excited to partner with an experienced team with a proven track record in hybrid projects across Zimbabwe, Kenya, and Ivory Coast.”

Grid Africa expands solar solutions across the continent

Founded in 2015, Grid Africa is advancing renewable energy across the continent, focusing on solar technologies that boost efficiency and cut costs. Led by Norman Moyo, the company is known for reliable installations backed by service and maintenance packages.

Moyo, also CEO of Distributed Power Africa, has over 20 years of pan-African experience in sectors from telecoms to renewables, working in Nigeria, Tanzania, Zambia, Zimbabwe, and South Africa. Under his leadership, Grid Africa offers flexible financing options, including 15-year power lease agreements that provide clients with immediate energy savings.

Beyond its operations in South Africa, Grid Africa has expanded into Zambia, a nation currently grappling with widespread load shedding. This strategic move underscores Grid Africa’s dedication to addressing Africa’s energy crisis, ensuring businesses have access to reliable and cost-effective power solutions. As South Africa’s energy landscape evolves, Grid Africa is strategically positioned to spearhead the renewable energy transformation across the continent.