Commercial and industrial solar developer SolarX has secured a €15mn ($16.3mn) senior secured financing from the Afrigreen Debt Impact Fund. The operation aims to refinance existing assets and expand activities in Côte d’Ivoire, Senegal, Mali and Burkina Faso.
A structured financing to support growth
The loan includes short and long-term tranches, enabling SolarX to replace more expensive debt while structuring its growth through new commercial and industrial (C&I) and storage projects. By targeting solar installations ranging from 100 kW to 15 MW, Afrigreen aligns with the demands of the underfinanced mid-market segment in sub-Saharan Africa.
RGREEN INVEST, the fund’s manager, leads the transaction through the joint venture Echosys Invest. Afrigreen’s portfolio targets 20 to 30 investments, each between €10mn and €15mn, over terms of eight to ten years. This ticket accounts for around 15 % of the fund’s total capacity, making it a strategic position.
Geographic concentration and political risks
SolarX projects are deployed within the West African Economic and Monetary Union (WAEMU), where the CFA franc’s peg to the euro mitigates currency risk for euro-denominated loans. However, operations in Mali and Burkina Faso expose the company to heightened political instability and operational security concerns.
Public entities such as CI-Energies, SENELEC, EDM-SA and SONABEL play key roles in regulation and grid interconnection. Legal frameworks remain in transition, notably regarding self-generation, wheeling and surplus sales, requiring constant attention to the bankability of contracts.
Economic and operational implications for SolarX
The financing will allow SolarX to structure long-term cash flows while providing greater visibility for industrial clients. Facing frequent power cuts, clients often resort to diesel, with costs often exceeding $0.30/kWh, compared to solar contractual rates around $0.12/kWh in the region.
The loan structure likely includes security over project SPVs, physical assets, power purchase agreements (PPAs), and lease contracts, offering Afrigreen a high level of collateral. This approach also reinforces SolarX’s financial governance, shaped by strict contractual commitments.
A geopolitical tool for European capital
With Proparco, FMO, E3 Capital and Triple Jump already in SolarX’s equity, this deal reflects a coordinated effort by European investors to secure key positions in the francophone C&I segment. This positioning counters rivals from Russia, China and the Gulf, active in larger-scale solar projects.
The growing exposure of investors to politically unstable markets may eventually curb their risk appetite if regional tensions persist. However, no public documentation indicates any non-compliance by involved parties, strengthening their institutional profile.
A regional platform poised to expand
The transaction provides SolarX with increased credibility among institutional lenders and prepares the ground for additional capital raising. By structuring debt under a near project finance model, the company may improve its leverage ratios, reduce its weighted average cost of capital, and unlock a pipeline of developing projects.
At the sector level, this type of financing could accelerate professionalisation of the C&I solar segment. It sends a strong signal to local businesses and public authorities regarding the viability of a distributed model based on hybrid solutions combining solar, storage and diesel within robust contractual frameworks.
