Grid Africa has secured an equity investment of R50 million ($2.8 million) from Rifuwo Energy Partners to accelerate the development of renewable energy projects across South Africa.
The investment comes at a crucial time as the country grapples with rising energy costs and a deepening electricity crisis. With Eskom’s proposed tariff increases of up to 43.55% by mid-2025, Grid Africa aims to address the crisis by expanding its solar energy solutions.
Norman Moyo, CEO of Grid Africa, highlighted the opportunities created by South Africa’s energy security challenges. He noted that falling costs of solar technology and lithium batteries make it easier for businesses to adopt solar energy projects, providing relief from escalating energy prices.
The company’s focus is on improving energy efficiency and offering peak shaving solutions to help businesses avoid high electricity charges during peak periods.
Since its founding in 2015, Grid Africa has been advancing the adoption of renewable energy across the continent, with a particular focus on solar energy. The company has developed and maintained hybrid energy projects in countries like Zimbabwe, Kenya, and Ivory Coast, demonstrating its ability to operate in challenging environments. Its recent expansion into Zambia, a country struggling with frequent load shedding, reinforces its commitment to providing sustainable energy solutions across the region.
South Africa has seen increased efforts to enhance its renewable energy infrastructure in recent months. In October 2024, the National Transmission Company South Africa (NTCSA) committed R112 billion ($6.3 billion) to overhaul the country’s transmission grid through the ambitious Transmission Development Programme (TDP). This initiative aims to unlock 30,000 MW of renewable energy capacity by 2029, promoting green energy projects like wind and solar.
Other key players are also contributing to the renewable energy push. Terra Firma, a South African renewable energy company, has announced a R1.3 billion ($73.8 million) solar project, which will deliver 110 MW of solar energy. Hohm Energy, a climate startup, also raised $8 million in seed funding to promote the adoption of rooftop solar, further contributing to South Africa’s shift toward sustainable energy solutions.