The Africa Decarbonisation Fund I will focus on projects that help reduce carbon emissions and improve energy efficiency in the commercial and industrial sectors.

 

The fund is expected to play a key role in helping businesses adapt to energy challenges and invest in more sustainable solutions.

Industries such as data centres and manufacturing are top priorities for the fund, especially as they continue to face power reliability issues.

 

These sectors have experienced a 40% decline in grid reliability, largely due to their reliance on the Southern African Power Pool.

 

This energy network supplies electricity to most Southern African Development Community (SADC) countries, drawing nearly 50% of its power from coal and 40% from hydropower.

Investment will target several areas, including:

• On-site energy generation
• Smart grid systems
• Industrial and commercial energy efficiency
• Electric vehicle infrastructure
• Digital and blockchain-enabled energy solutions
• Energy storage and battery technology
• Renewable power purchase agreements for solar energy

Commenting on the partnership, Semoli Mokhanoi, Chief Commercial Officer at Mergence, said:

 

“Our collaboration with Scalar brings together over two decades of experience in structuring infrastructure deals, along with more than five years of working together as teams. At Mergence, we’re well-versed in investing in private markets across challenging environments, with a track record in sectors like renewable energy, water, housing, digital connectivity, and healthcare.”

The fund is expected to help accelerate the shift toward greener infrastructure and more resilient energy systems across Southern Africa.