Strategic investments in renewable energy solutions address critical infrastructure needs

Across much of sub-Saharan Africa, businesses face a persistent challenge: unreliable electricity. According to the International Energy Agency, approximately 43% of Africa’s population lacks access to electricity entirely, while millions more face frequent outages and unstable connections. This energy deficit costs African economies between 2-4% of GDP annually in lost productivity – translating to billions of dollars.

For Val Zolot (Valery Zolotukhin), a strategic investor with over 15 years of experience in identifying high-growth opportunities and the founder and president of IMPACT Capital, this widespread challenge represents not just a problem but a significant opportunity. With a track record of successful exits across multiple industries and a reputation for identifying market trends before they become mainstream, Zolot brings both analytical rigor and practical business-building experience to his investment decisions.

Val Zolot has developed a reputation for spotting opportunities others miss. His recent investment in Neosun Energy – a solar company providing commercial power installations across Africa – exemplifies this approach.

Innovative Investment Approach to Africa’s Energy Needs

Val Zolot has developed a distinctive approach to identifying investment opportunities in emerging markets like Africa. 

“Traditional investment thinking can be dangerously linear,” Zolot explains. “At IMPACT Capital, we try to identify inflection points where markets are about to change fundamentally.”

The African energy crisis represents precisely such an inflection point. With renewable energy costs declining and demand for reliable power growing, conditions are ideal for innovative solutions that can operate independently of traditional grid infrastructure.

“When analyzing the African market, what struck me wasn’t just the scale of the energy problem, but how ready the market was for solutions,” explains Zolot. “Businesses across the continent are desperate for reliable power, and now technology has evolved to meet this need affordably.”

While the social impact of energy investments is compelling, Zolot’s approach remains grounded in rigorous analysis. IMPACT Capital has developed RANKS, a proprietary analytical system that evaluates over 50,000 public companies worldwide.

“We’ve digitized the analysis process,” he explains. “The system tracks over 150 parameters in real-time, identifying patterns that might otherwise be missed.”

The RANKS system conducts a comprehensive assessment examining multiple aspects of company performance, including financial position (profitability metrics, debt load, liquidity ratios, and free cash flow), growth dynamics (revenue growth rates, profit expansion, and asset utilization), business valuation (using multiples like EV/EBITDA, P/BV, P/S, and P/E), and risk factors (including speculative activity and ESG considerations).

This data-driven approach extends to private investments like Neosun. Zolot’s team exercised extensive diligence before investing capital, studying market dynamics and growth forecasts.

“By 2024, the renewable energy market had reached $728 billion globally,” he recalls. “Africa is one of our fastest-growing segments. When you realize that solar became the second most affordable energy source on the continent in 2018, the opportunity becomes apparent.”

Creating Impact Through Solar Innovation

When Zolot examined Neosun Energy’s business model, he saw a company uniquely positioned to address Africa’s energy challenges with practical solutions.

Neosun has established operations in key African markets, with offices in South Africa (Cape Town, Johannesburg, Durban) and Kenya (Nairobi). It plans to expand to other regions, including Nigeria. Their 2024 performance shows remarkable progression—starting with average deals of $10,000 and growing to $200,000+ by year-end.

“What convinced me about Neosun wasn’t just their growth trajectory,” Zolot says. “It was their comprehensive approach to the problem. They don’t just install solar panels; they create integrated power solutions that combine solar generation, energy storage systems, and smart management technology to ensure reliable power regardless of weather or time of day.”

He highlights Neosun’s PowerHub, which is essentially a portable solar power plant in a shipping container that can be deployed in remote areas within hours.

“For mining operations or manufacturing facilities located hours from the nearest grid connection, the PowerHub provides immediate, reliable power without massive infrastructure investment. That’s transformative for businesses across Africa.”

Beyond the immediate business benefits, these solar solutions provide significant social impact. Local communities gain access to more stable electricity, schools can operate consistently, and healthcare facilities can maintain cold chains for vaccines and medications. The environmental benefits of replacing diesel generators further enhance the sustainability of local economies.

Nigeria is among the top three countries where Neosun plans to open offices in the near future – a market Zolot believes holds enormous potential due to its size and persistent energy challenges. With over 200 million people and Africa’s largest economy, Nigeria represents both a humanitarian need and a business opportunity in the renewable energy space.

A Holistic Vision: Business Success and Social Responsibility

Zolot’s investing philosophy embodies a comprehensive method that weighs profit alongside purpose. This view has informed both his professional life and personal projects.

His commitment to social responsibility extends beyond his investment decisions. He has sponsored the women’s chess team that became Russian champions. Additionally, Zolot has invested in educational initiatives that make a difference for children and young people. One such project is MEL Science, which transforms learning chemistry, physics, and mathematics into exciting adventures for children and teenagers. 

Such an integrated business and social responsibility lens guides IMPACT Capital’s Africa investment strategy. By focusing on companies like Neosun that address critical infrastructure needs, Zolot aims to generate returns while contributing to sustainable development.

Sharing Expertise and Building a Community of Impact Investors

To maximize investment opportunities and scale his business impact, Zolot has developed an extensive professional network. IMPACT Capital maintains connections with more than 1,300 visibility into emerging trends and market dynamics across different regions and industries.

He has shared his investment philosophy with a wider audience through his bestselling book Shareholder: Big Money on Small Companies, which provides insights into finding value in smaller enterprises with significant growth potential. His thought leadership extends across multiple platforms – he has over 50,000 subscribers on YouTube, 17,000 on Instagram, and 12,000 on Telegram.

“Knowledge should be shared”, he says. “By helping others see the investment potential in areas like renewable energy, we can get more money flowing into solutions for big problems and create lasting businesses.”

His talks on smart investments in growing markets have caught the eye of investors who want their money to make a difference socially, too. This focus on building a community has helped bring more resources to help solve Africa’s energy challenges.

The Road Ahead for Africa’s Energy Transformation

“When analyzing the African market, what struck me wasn’t just the scale of the energy problem, but how ready the market was for solutions,” explains Zolot, whose investment firm has been eyeing opportunities in renewable energy. “Businesses across the continent are desperate for reliable power.”

The potential for renewable energy solutions in Africa remains enormous. Beyond their current operations in South Africa and Kenya, Neosun targets Nigeria and several other high-potential African markets.

“Markets like Africa represent significant opportunities,” Zolot notes. “These are regions where critical infrastructure challenges intersect with business potential, creating an ideal environment for strategic investments.”

With the continent’s population growing rapidly and economies developing, energy demand will only increase in the coming years. Companies that can provide reliable, sustainable power solutions are positioned to play a crucial role in Africa’s development journey.

Africa needs reliable power, and renewable energy is becoming more affordable. Growing economies across the continent mean there’s both a need and a market for companies like Neosun. With expanding operations in South Africa, Kenya, and soon Nigeria, Neosun aims to address power challenges while building a viable business.

Investors like Zolot see both business opportunity and social impact in Africa’s energy sector. As more companies tackle the continent’s infrastructure challenges, they’ll help build stronger economies while creating returns for their backers.