- Revego Africa Energy Fund has raised R1 billion ($62 million) in new capital to expand its renewable energy investments in South Africa.
- The funding, backed by British International Investment Plc and Alexander Forbes Group Holdings Ltd., will support solar and wind projects across the country.
Revego Africa Energy Fund has raised 1 billion rand ($62 million) in its first capital raise since 2021. As a result, the fund has strengthened its ability to finance renewable energy projects across South Africa.
The raise includes a 500 million rand investment from British International Investment Plc and a matching 500 million rand from Alexander Forbes Group Holdings Ltd.. Consequently, the fund’s portfolio has grown to 3 billion rand.
Chief Investment Officer Ziyaad Sarang confirmed that the fund could unlock an additional 250 million rand from BII. However, another institutional investor must match that commitment before the fund can access the capital.
The fund will deploy the newly secured capital to finalise its investment in the 150-megawatt Springbok solar plant in Free State province. In addition, it will finance five wind power projects across South Africa. Therefore, the raise directly supports project execution and expansion.
Revego launched in August 2021 as an open-ended fund. Its initial investors included Investec Bank Ltd., Eskom Pension and Provident Fund, and UK Climate Investments LLP, a joint venture between the British government and Macquarie Asset Management.
Although the fund maintains a regional mandate, it has invested all 10 of its projects in South Africa. This strategy reflects the country’s position as the largest renewable energy market in sub-Saharan Africa. Since inception, the fund has achieved its target yield of inflation plus 5% to 7%. Moreover, it has returned 600 million rand in dividends over four years.
Sarang previously led infrastructure at Standard Bank Group Ltd. and now oversees fund initiatives at Investec. He aims to double the fund’s size to 6 billion rand within two years. Furthermore, he plans to grow assets to 10 billion rand by 2029.
Revego has developed a pipeline of up to 10 billion rand in operational green projects within South Africa. In addition, it has identified another $100 million in projects elsewhere on the continent. However, the fund will maintain its domestic focus in the near term because of strong local opportunities. Sarang expects the fund to add at least one sub-Saharan project outside South Africa within the next 24 months.
South Africa continues to phase out coal-fired power plants. At the same time, it is diversifying its energy mix to include renewables and gas to meet rising demand. Therefore, institutional investors increasingly view renewable infrastructure as both a climate solution and a stable income asset.
Looking ahead, Sarang said the fund may consider a public listing once assets under management reach between $750 million and $1 billion.
Overall, the successful capital raise signals strong institutional confidence in South Africa’s renewable energy sector and reinforces Revego’s role in advancing the country’s energy transition.