Mirova Fund Injects $20m into West African Solar Energy Firm ManoCap Energy
In a significant boost to renewable energy initiatives in West Africa, the Mirova Gigaton Fund has committed $20 million in long-term debt financing to ManoCap Energy, a commercial and industrial (C&I) solar energy provider. This investment marks the fund’s fourth since its launch in March 2023 and underscores growing investor confidence in Africa’s green energy sector.
ManoCap Energy, backed by the Evolution II Fund, has established itself as a key player in the West African C&I solar market. The company specializes in replacing diesel generators with solar and battery storage hybrid systems, a critical step in reducing carbon emissions and improving energy reliability in the region.
Tom Cairnes, CEO of ManoCap Energy, expressed enthusiasm about the deal. “We are delighted to have closed funding from Mirova to enable the continued expansion of our business in West Africa,” he said. Cairnes highlighted the rapid growth in the C&I sector over recent years and emphasized that the new funding would allow the company to meet significant short-term demand from its customer pipeline.
The investment comes at a crucial time for West Africa’s energy sector. Many countries in the region struggle with unreliable power supply, which hampers economic growth and development. ManoCap Energy’s focus on providing sustainable energy solutions to commercial and industrial clients, including small and medium-sized enterprises (SMEs), is seen as a vital contribution to addressing this challenge.
John Kimotho, Investment Director at Mirova, described ManoCap Energy as “a key player in the West Africa C&I space.” He added that the investment aligns perfectly with Mirova Gigaton Fund’s core strategy of scaling up support for high-impact clean energy projects in emerging markets.
The funding will enable ManoCap Energy to consolidate its operations in Ghana and Sierra Leone while facilitating expansion into neighboring countries such as Nigeria, Ivory Coast, Guinea, Liberia, and Togo. This geographical diversification is expected to enhance the company’s resilience and growth prospects.
Beyond the immediate business implications, the investment is anticipated to yield significant environmental and social benefits. By promoting the transition from diesel to solar power, ManoCap Energy’s projects directly contribute to climate change mitigation efforts. Additionally, the company’s focus on improving energy access for businesses, particularly SMEs, is expected to support socio-economic development in low-income African countries.
The investment also aims to address the digital divide between urban and rural areas through ManoCap Energy’s telecommunication solarization businesses. This aspect of their operations could prove particularly impactful in regions where reliable power supply is crucial for expanding internet and mobile phone access.
Ismail-Claude Candolo, Investment Director and Regional Head West and Central Africa at Inspired Evolution, the manager of the Evolution II Fund, welcomed the debt commitment. He emphasized the potential of this collaboration to advance clean energy infrastructure investment across West Africa, combining ManoCap Energy’s sector experience with Mirova Gigaton’s track record in financing solar-as-a-service projects in Sub-Saharan Africa.
The Mirova Gigaton Fund, structured as a SICAV RAIF (Société d’Investissement à Capital Variable, Reserved Alternative Investment Fund) under Luxembourg law, is managed by Mirova, with Mirova SunFunder East Africa acting as Investment Advisor. The fund is open to eligible investors as defined in its regulatory documents.
This investment comes amid growing global interest in Africa’s renewable energy potential. The continent’s abundant solar resources, combined with falling technology costs and supportive policy environments in many countries, have created attractive opportunities for investors seeking both financial returns and positive environmental impact.
However, challenges remain. The renewable energy sector in Africa still faces hurdles such as regulatory uncertainties, grid integration issues, and the need for significant upfront capital. Investments like this one from Mirova Gigaton Fund play a crucial role in overcoming these obstacles and accelerating the continent’s transition to cleaner energy sources.
As West Africa continues to grapple with energy security issues and the imperative of sustainable development, this $20 million investment in ManoCap Energy represents a noteworthy step towards a greener, more reliable energy future for the region.
