Grid Africa has secured a R50 million ($2.8 million) equity investment from Rifuwo Energy Partners to accelerate the development of renewable energy projects across South Africa. This investment comes as the country faces mounting energy challenges, including rising electricity costs and the ongoing power crisis.
South Africa’s energy woes have been exacerbated by Eskom’s proposal to raise electricity tariffs by up to 43.55% by mid-2025, following a 13% increase in April 2024. In response, Grid Africa plans to focus on developing solar energy solutions aimed at mitigating these rising costs and providing more sustainable energy options.
According to Norman Moyo, CEO of Grid Africa, “Recent changes in South Africa’s energy security present a unique opportunity for businesses to deploy more solar energy projects, offering a buffer against escalating energy prices.” Moyo emphasized that the declining costs of solar technology and lithium batteries will enable Grid Africa to improve energy efficiency and offer peak shaving solutions, helping clients avoid peak-hour charges from the national grid.
Founded in 2015, Grid Africa is dedicated to advancing the adoption of renewable energy solutions across Africa. The company’s mission is to drive a sustainable future by offering innovative solar technologies that reduce energy costs and enhance efficiency.
Grid Africa has already successfully implemented hybrid energy projects in countries such as Zimbabwe, Kenya, and Ivory Coast, proving its ability to navigate challenging energy markets.
Recently, the company expanded its operations into Zambia, a country grappling with frequent power outages, underscoring Grid Africa’s commitment to providing reliable energy solutions throughout the region.
South Africa has also seen broader efforts to improve its renewable energy infrastructure. In October 2024, the National Transmission Company South Africa (NTCSA) pledged R112 billion ($6.3 billion) toward the country’s Transmission Development Programme (TDP), aimed at modernizing the grid and supporting 30,000 MW of renewable energy capacity by 2029.
Additionally, Terra Firma, a South African renewable energy firm, announced a R1.3 billion ($73.8 million) solar project to offset the rising costs of electricity.
This project will deliver a combined 110 MW of solar energy and utilize Eskom’s grid through a financial model known as “energy wheeling,” which promises significant cost savings for the country’s commercial and industrial sectors.
In parallel, Hohm Energy, a South African climate startup, recently raised $8 million in seed funding to scale the adoption of rooftop solar systems, further emphasizing the country’s shift toward greener energy solutions.
As South Africa continues to face energy challenges, Grid Africa’s latest investment positions the company at the forefront of renewable energy development, offering innovative and efficient solutions to help alleviate the country’s power crisis.