Gridworks Development Partners and New GX is set to invest $40million in the South African company Sustainable Power Solutions (SPS).
SPS will use the funds to expand its services to commercial and industrial (C&I) customers across sub-Saharan Africa.
Gridworks, an investment company of the CDC group, will provide $22 million of the funds, while South African-based New GX will provide the rest.
SPS, which currently operates in South Africa to Kenya, Namibia and Seychelles, want to expand its C&I services in Eastern and Southern Africa.
SPS believes that this new cash infusion will enable it to enter new markets, especially Ghana and Nigeria.
Gridworks believe that Solar PV provides a cheaper alternative for businesses that rely on diesel generation to ensure supply due to the unreliable grids of sub-Saharan African countries.
Gridworks currently is the majority shareholder in SPS with a total financial commitment of $31 million after investing in the company in 2019.
Other shareholders include the Titan Group in addition to New GX. Over the past three years, SPS has added 22MW of new installed capacity in Southern Africa and Kenya with a total operating portfolio of 45 MWp of solar capacity and 15MWh of energy storage capacity.
Gridworks believes that its investment will enable the deployment of 100MWp of new installed C&I capacity in Africa.