- The fund has returned R600 million ($37.3 million) in dividends over four years, a performance that has helped attract institutional investors.
- Revego has invested in ten operational renewable energy projects, including stakes in the Loeriesfontein II, Khobab, and Noupoort wind farms in the Northern Cape, which operate under long-term power purchase agreements with Eskom.
Revego Africa Energy Fund has secured R1 billion ($62 million) in new funding to expand its renewable energy investments in South Africa. According to the firm, the funds will complete Revego’s investment in the 150 megawatt Springbok Solar Plant in the Free State and finance five wind-power projects across the country.
Revego’s Chief Investment Officer, Ziyaad Sarang, said the capital could unlock an additional R250 million ($15.5 million) from UK development finance institution BII if another institutional investor matches the pledge. “This additional capital positions the fund to scale its impact while attracting further institutional participation,” Sarang said.
He added that the fund has returned R600 million ($37.3 million) in dividends over four years, a performance that has helped attract institutional investors. Initial investors in the fund include Investec Bank Ltd., Eskom Pension and Provident Fund, and UK Climate Investments LLP, a joint venture between the British government and Macquarie Asset Management Ltd.
Sarang further disclosed that all of Revego’s investments to date are in South Africa, reflecting the country’s established renewable energy market. However, the fund intends to include at least one project outside South Africa within the next 24 months.
The firm has invested in ten operational renewable energy projects since its launch in August 2021. These include stakes in the Loeriesfontein II, Khobab, and Noupoort wind farms in the Northern Cape, operating under long-term power purchase agreements with Eskom. The fund holds interests in the Aries, Konkoonsies, and Soutpan solar parks developed under South Africa’s Renewable Energy Independent Power Producers Procurement Programme (REIPPPP).
Sarang aims to double the fund’s portfolio to R6 billion over the next two years and grow it further to R10 billion ($620 million) by 2029. According to him, once assets under management reach between $750 million and $1 billion, management will consider a potential listing. At the same time, the current open-ended structure allows the fund to continue raising capital for new projects.
The company has a pipeline of around R10 billion ($620 million) in operational green energy projects in South Africa, with an additional $100 million planned elsewhere in Africa. However, Revego is retaining a primary focus on South Africa due to its extensive project pipeline.
Revego focuses on operational wind and solar projects that provide predictable cash flows and have consistently met its target yield of inflation plus 5% to 7% since inception. The firm remains focused on renewable energy projects in South Africa while gradually exploring opportunities in sub-Saharan Africa.