Revego Africa Energy Fund has secured R1 billion ($62 million) in new funding to expand its renewable energy investments in South Africa.
The funds are expected to complete Revego’s investment in the 150-megawatt Springbok Solar Plant in the Free State and finance five wind-power projects nationwide
The Chief Investment Officer of the firm, Ziyaad Sarang, said the capital could unlock a further R250 million ($15.5 million) from UK development-finance institution BII if another institutional investor matches the pledge.
He added that the fund has returned R600 million ($37.3 million) in dividends over four years, which 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.
Operational renewable energy projects
Since its launch in August 2021, Revego has invested in ten operational renewable energy projects. These include stakes in the Loeriesfontein II, Khobab, and Noupoort wind farms in the Northern Cape, which operate under long-term power purchase agreements with Eskom.
In the solar sector, the fund holds interests in the Aries, Konkoonsies, and Soutpan solar parks.
These were developed under South Africa’s Renewable Energy Independent Power Producers Procurement Programme (REIPPPP).
Sarang noted that the newly raised funds will complete the 150-megawatt Springbok Solar Plant investment in the Free State province and finance five wind-power facilities across the nation.
He added that all of Revego’s investments so far are within South Africa, representing the country’s established renewable energy market, though the fund intends to include at least one project outside South Africa within the next 24 months.
Fund strategy and development plans
Revego focuses on operational wind and solar projects that provide predictable cash flows. Since inception, the fund has consistently met its target yield of inflation plus 5% to 7%.
Sarang, who has more than 25 years of experience in power, mining, and infrastructure sectors, aims to double the fund’s portfolio to R6 billion over the next two years. He also plans to grow it further to R10 billion ($620 million) by 2029.
According to him, once the fund reaches assets under management of $750 million to $1 billion, management will consider a potential listing, while the current open-ended structure allows Revego to continue raising capital on new projects.
The company has a pipeline of around R10 billion (($620 million) in operational green projects in South Africa, with an additional $100 million planned elsewhere in Africa. However, it is retaining a primary focus on South Africa due to its large project pipeline.
Looking ahead
Revego remains focused on renewable energy projects in South Africa, while gradually exploring opportunities in sub-Saharan Africa.
The projects are located in regions with high wind and solar potential, complementing the country’s existing renewable infrastructure as South Africa gradually retires coal-fired plants that currently supply most of its electricity.
These investments support the nation’s energy diversification goals while providing stable, operational assets to investors.
