Starsight Energy Africa Group Partners with British International Investment to Advance Clean Energy Growth in West Africa Through $15 Million Mezzanine Funding
Starsight Energy Africa Group, a leading provider of clean energy solutions for commercial and industrial customers across Sub-Saharan Africa, has secured a significant $15 million mezzanine debt funding from British International Investment, the UK's development finance institution and impact investor. This strategic partnership aims to accelerate the deployment of renewable energy projects in West Africa, with a particular focus on Nigeria, where the majority of the funds will be allocated to enhance power security and reduce dependence on unreliable grid systems and diesel self-generation.
Funding Deployment and Strategic Objectives
The funding will be deployed within Starsight's existing West African operations to support growth, strengthen operational capabilities, and scale energy solutions for commercial and industrial users. A substantial portion of the investment will finance a pipeline of renewable solar energy projects, while also ensuring best-in-class service is maintained for existing clients, including asset replacement initiatives. This collaboration aligns with BII's strategic objectives to promote productive, sustainable, and inclusive development in emerging markets.
Addressing Energy Challenges in Nigeria
In Nigeria, it is estimated that up to 40 gigawatts of electricity are generated from diesel and petrol generators, highlighting a critical need for cleaner alternatives. Paul van Zijl, Group CEO at Starsight, emphasized that this funding round with BII represents an important stride toward filling this vacuum with clean renewable energy for the commercial and industrial sector. He stated, "Partnering with BII marks a significant milestone for the Starsight Energy Africa Group. This funding strengthens our ability to scale more rapidly in Nigeria and Ghana, delivering reliable, clean energy solutions that support economic growth and improve energy resilience for our clients."
Commitment to Sustainable Development
Van Zijl further added that BII's decision to partner with Starsight endorses the company's role in increasing energy access within these markets, delivering affordable, low-carbon solutions while uplifting local communities. Jonny Baxter, British Deputy High Commissioner in Lagos, commented, "The UK remains committed to supporting Nigeria's transition to clean, reliable, and affordable energy. This investment by BII reflects that commitment in action. By expanding access to dependable renewable power for businesses across Nigeria, it will help unlock growth, strengthen energy resilience, and reduce dependence on costly and polluting diesel and petrol self-generation."
Supporting Business Growth and Clean Energy Expansion
Benson Adenuga, West Africa Regional Director and Head of Office, Nigeria, at BII, highlighted the alignment between Starsight's clean energy model and BII's mandate. He said, "Nigeria's businesses need dependable and affordable power to grow. We identified Starsight's strong track record, combined with its clean energy model, as a strong fit with BII's mandate. Starsight's commercial and industrial solar solutions directly address this challenge by reducing dependence on refined petroleum products and improving reliability."
Future Growth and Impact
Michael Chuchu, Group Commercial Director at Starsight, noted that the BII funding will unlock new capacity in countries where energy stability has historically been a barrier to growth. He stated, "Nigeria remains our second-largest market and a core focus area for expansion. For our West African customers, this investment tangibly proves that Starsight is here to support their operations and provide energy certainty through environmentally responsible solutions. With BII's support, we're set to pursue the next chapter of our growth journey."
About the Partners
Starsight Energy Africa Group provides clean on-grid and off-grid energy services to commercial and industrial clients in Sub-Saharan Africa, eliminating upfront capital costs and making it financially viable for organizations to switch to clean energy solutions. The company is backed by Helios Investment Partners and African Infrastructure Investment Managers. British International Investment is the UK's development finance institution, investing in businesses in developing countries to improve lives and protect the planet, with a focus on climate finance and women's economic development.
