Private equity firm Sanari Capital has made an R87.5-million investment in power generation systems company Energenic to enable it to scale up its business in Africa and South Africa.
Energenic's solutions provide reliable and cost-effective energy solutions to key growth sectors on the continent, including telecommunications, tourism and general commerce, Sanari said in a statement.
Africa’s infrastructure challenges, particularly in the energy sector, and the low and declining electrification rates, averaging 30% in many countries, are fuelling the demand for alternative power solutions with a growing emphasis on renewable hybrid solutions that address energy access and reliability, as well as climate change.
“Sanari is committed to being part of the solution in addressing these challenges, deploying its approach of partnering with management teams to build businesses that are sustainable, scalable and saleable, or Sanari 3S.
“The demand for hybrid solutions that provide energy security and tailored usage management for businesses is highly relevant in our environment where concerns extend beyond grid availability to include affordability, environmental sustainability and efficiency,” says Sanari partner Sihle Gumede.
Energenic is the fourth portfolio company in the Sanari 3S Growth Fund and is Sanari’s first entry into the energy sector.
It is aligned with one of Sanari’s five investment themes, namely “There is no planet B”, which focuses on green solutions, environment-friendly alternatives across industries and sustainable production and consumption practices, she says.
“Our passionate team of dedicated staff and management, from those who bend and weld steel each day to our engineers on remote sites in all corners of Africa, has seen Energenic and our principal brand Generator Logic through several transformations over the past 25 years,” says Energenic founder and CEO James van Wyk.
Energenic has been on a journey to find an investor that understands its vision and is willing to help it grow strategically and move forward in this changing time.
“I am pleased to welcome Sanari Capital as partners to our current owner-manager shareholder base,” he says.
Edited by: Creamer Media Reporter
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