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Revego Africa Energy Fund has raised 1 billion rand ($62 million) in fresh capital, a significant boost for a South Africa focused renewable investor that is trying to scale up at a time when the country is desperate for new power supply.
The fund said the raise is its first capital raising round since 2021. It includes two cornerstone commitments of 500 million rand each, one from British International Investment, the UK’s development finance institution, and the other from Alexander Forbes Group Holdings through its investment arm.
Ziyaad Sarang, Revego’s chief investment officer, said the new funding strengthens the fund’s ability to finance operating renewable assets and recycle capital back into new projects. He added that British International Investment could provide an additional 250 million rand if another institutional investor matches that amount, effectively extending the raise if the right partner comes in.
Revego said the capital will be used to complete its investment in the 150 megawatt Springbok Solar Plant in the Free State province and to finance five wind power projects across South Africa. The fund did not name the wind sites, but positioned the investments as part of a wider plan to build a larger, diversified portfolio anchored in long term contracted cash flows.
Launched in August 2021 as an open ended fund, Revego said its early backers included Investec Bank, the Eskom Pension and Provident Fund, and UK Climate Investments, a joint venture involving the British government and Macquarie Asset Management. Although the fund describes itself as regional in mandate, all 10 of its investments so far are in South Africa, the biggest renewable market in sub Saharan Africa.
Revego said it has met its target yield of inflation plus 5% to 7% since inception and has returned about 600 million rand in dividends over four years. Sarang said the fund aims to double in size to 6 billion rand within two years and to reach 10 billion rand by 2029.
The fund also reported a pipeline of up to 10 billion rand in operational green projects within South Africa, along with roughly $100 million in projects elsewhere on the continent. It expects to keep its focus at home in the near term, though Sarang said at least one sub Saharan investment outside South Africa could be added within the next 24 months.
South Africa has been gradually shifting away from coal fired power as load shedding and aging plants keep pressure on the grid. Revego said it may consider a public listing once assets under management reach about $750 million to $1 billion, a move that would open another route to capital as the country’s energy transition accelerates.
