• Vantage Capital invested 635 million rand ($38.7 million) in SolarAfrica’s CESA unit.

• The mezzanine financing helped SolarAfrica buy out Inspired Evolution’s stake.

• The deal highlights growing use of private financing tools in South Africa’s solar sector.

South African fund manager Vantage Capital announced on Monday, March 2, a 635 million rand ($38.7 million) investment in Commercial Energy South Africa (CESA), a subsidiary of SolarAfrica Energy. The transaction takes the form of mezzanine financing arranged alongside Greenpoint Capital.

According to a statement from the company, the funding was used to finance SolarAfrica’s buyout of Inspired Evolution’s stake in CESA, making SolarAfrica the sole owner of the business.

CESA brings together SolarAfrica’s commercial and industrial energy assets, including rooftop solar installations and battery storage systems developed and operated by the company.

Mezzanine financing is a hybrid instrument that sits between debt and equity. It typically offers more flexible repayment terms, designed to match a company’s cash flow. While it carries higher risk for lenders, it also offers higher potential returns. In SolarAfrica’s case, the financing was used specifically to support a shareholder buyout.

“Vantage has provided senior debt to a number of renewable energy projects through its GreenX senior debt division. We are pleased to showcase in this deal how mezzanine finance can play a part in the rapidly evolving power sector,” said Warren van der Merwe, managing partner at Vantage Capital.

Vantage Capital added that it has already supported multiple renewable energy projects through senior debt provided by its GreenX platform.

The use of mezzanine financing in this transaction reflects the growing range of private funding tools supporting renewable energy development in South Africa. This is particularly visible in the commercial and industrial solar segment, which relies on long-term contracts and decentralized energy systems.

Abdoullah Diop