Deal Summary
Sanari Capital (Sanari), through its Sanari 3S Growth Fund, has invested R87.5 million (~$4.8 million) in Energenic Holdings (Energenic), a family-owned hybrid and solar energy generating company. Based in South Africa, Energenic provides energy generation solutions to sectors like telecommunications, tourism, and commerce across 32 African countries, with products and services that include diesel generators, solar panels, inverters, and water heating systems. The capital injection is intended to support Energenic’s domestic and regional expansion. In addition, it will also accelerate the company’s efforts to meet the growing demand for alternative and sustainable energy solutions in Africa. Energenic is Sanari’s first energy investment and the fourth addition to the Sanari 3S Growth Fund portfolio.
Term
- Fund Manager: Sanari Capital
- Fund: Sanari 3S Growth Fund
- Deal Type: Equity Investment
- Target: Energenic Holdings
- Investment Amount: R87.5 million (~$4.8 million)
Deal Rationale
The deal aligns with Sanari’s strategy of backing larger founder-run and owner-managed businesses through its Sanari 3S Growth Fund. It follows the success of its Sanari Growth Partners 12J Fund, which targeted smaller-cap companies within the same theme. As a hybrid energy generation company, Energenic fits neatly within the Fund’s “There is no planet B” theme, which prioritises green solutions and sustainable investments, and also provides diversification benefits to Sanari after investments in education (EduLife Group) and biometric technology (iiDENTIFii). Energenic’s 20-year track record, technical expertise, and rapid team expansion (from 10 to 200 employees within four years) underscore its resilience and potential for growth, making it an attractive addition to Sanari’s 3S Growth Fund. For Energenic, the partnership is a culmination of a journey to find a strategic partner to support its growth and vision, especially as it navigates shifts in the energy landscape. Sanari’s interest in impact-driven, growth-stage companies aligns well with Energenic's expansion goals, particularly given the increased demand for sustainable energy solutions on the continent.
- Market Opportunity: Africa’s energy transition offers a significant market opportunity, particularly for commercial sectors like telecommunications, tourism, and commerce, which require reliable, eco-friendly energy solutions to meet operational and environmental goals. This energy transition supports a pipeline of renewable energy projects, with the International Energy Agency projecting 90 GW in new renewable capacity in Sub-Saharan Africa from 2024 to 2030, increasing the region’s current installed capacity by over 2.5 times. Energenic is strategically positioned to exploit this trend as the company’s hybrid solar systems and battery storage products address the specific needs of high-demand sectors that require consistent power to maintain service reliability and meet sustainability targets. For instance, telecommunications companies depend on uninterrupted power for data centres, while tourism facilities increasingly prioritise sustainable operations. The African Development Bank estimates that up to $3 trillion in additional climate financing will be required to help Africa meet its net-zero goals by 2030, indicating a strong pipeline of capital inflows directed at alternative and sustainable energy solutions over the next half-decade. Energenic’s scalable offerings align with this trend, enabling businesses in Africa to adopt resilient power solutions aligned with Environmental, Social, and Governance (ESG) goals.
- Risk/Return Analysis: This investment holds significant upside for Sanari given the strong demand for alternative and sustainable energy solutions across high-growth sectors like telecommunications and commerce. The need for commercial and industrial companies to balance Africa’s evolving energy landscape with broader ESG goals offers a degree of risk protection, as sustainable energy demand is expected to remain resilient despite economic fluctuations. Moreover, exit opportunities appear favourable due to rising interest in African renewables from major international energy companies and impact-driven funds. This trend enhances exit protection as larger entities seek acquisitions to expand into Africa’s rapidly evolving energy market. However, political and regulatory risks remain. South Africa's new Government of National Unity (GNU) offers a promising path toward stability. Still, previous reform efforts have faced challenges, while future policy changes could impact energy regulations and tariffs. Overall, with a strong technical and institutional capacity to deliver hybrid energy solutions, Energenic stands to benefit from the continent’s rapid growth in distributed energy systems. Sanari’s investment also provides capital to scale production and expand distribution networks, allowing Energenic to increase market penetration in high-demand regions and industries on the continent.
About the Fund Manager
Founded in 2013, Sanari Capital is a majorly black and female-owned private equity firm based in South Africa, focused on growth-stage investments across Africa. The firm targets founder-led, high-growth businesses that are socially impactful and aligned with sustainable development goals. Sanari’s investment approach centres on investing in and partnering with management teams to build sustainable, scalable, and saleable businesses—referred to as the Sanari 3S approach. They look for well-established businesses at an inflexion point, driven by technology, innovation, thematic or sectoral growth drivers, and new markets. The firm typically invests between R50 million to R250 million in single or multiple tranches, primarily in South African companies, but also in companies based in other Sub-Saharan African countries with identifiable regional growth potential. Sanari has raised two funds: the Sanari Growth Partners 12J Fund and the 3S Growth Fund. The 3S Growth Fund—now at $65 million and nearing a $100 million target—invests in sectors such as technology, education, healthcare, and sustainable energy. Investors in the fund include the Public Investment Corporation (PIC), Africa’s largest asset manager, Alexforbes Investment, the RisCura Manager Development Programme, and the National Fund for Municipal Workers (NFMW).
