French multinational energy conglomerate Engie has completed 100 percent acquisition of Fenix International, a next generation energy company that offers solar home systems (SHS) in Africa.

The acquisition will help Engie accelerate its development in Africa’s off-grid energy market. Fenix will gain access to Engie’s supply chain, expertise, long-term capital investments, and talent across the energy value chain.

In October 2017, Engie had announced that it had reached an agreement to acquire 100 percent of Fenix International.

According to the 2017 Q4 and Annual Solar Funding and M&A Report released by Mercom Capital Group, there were 71 corporate M&A transactions in the solar sector in 2017, up slightly from 68 transactions recorded in 2016. Solar downstream companies were involved in 51 of these transactions.

Bruno Bensasson, the CEO of Engie Africa, commented on the development as saying, “We believe this is a major step along the path to universal energy access. The dramatically falling price of solar panels and batteries, combined with the inclusive “pay-as-you-go” financing platform created by Fenix, make solar home systems a key part of the energy mix for Africa’s future in combination with grid extension and micro-grids”.

Combining the strengths of Engie, a global energy player, and Fenix, a company with a team anchored in the heart of Sub-Saharan Africa, will enable faster deployment of solar to the large African population still lacking access to electricity.

In Africa, the demand of renewable energy is increasing as there are over 600 million people without electricity connection. This has opened great investment avenue for banks and other financial institutions in Africa.

Those who do have access to electricity suffer from unreliable grids. However, the country has an abundant supply of solar that remains an unutilized source of electricity generation.

Image credit: Engie