Revego Africa Energy Fund has raised R1 billion in new capital to finance solar and wind projects in South Africa, marking its first fundraising round since 2021. The Investec Bank-backed fund secured R500 million from British International Investment (BII), the UK’s development finance institution, and a matching R500 million commitment from South African pension administrator Alexander Forbes.
The raise brings the fund’s total portfolio to approximately R3 billion. Revego can access an additional R250 million from BII if another institutional investor matches that amount, Chief Investment Officer Ziyaad Sarang said in an interview.
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The fund will use the new capital to complete its investment in the 150-megawatt Springbok solar plant in Free State province and to finance five wind power facilities across the country. Launched in August 2021 as an open-ended vehicle, Revego’s initial backers included Investec, the Eskom Pension and Provident Fund, and UK Climate Investments LLP, a joint venture between the British government and Macquarie Asset Management.
Although the fund has a regional mandate, all 10 of its investments to date are in South Africa, the largest renewable energy market in sub-Saharan Africa. Revego said its portfolio has met its return target of inflation plus 5% to 7% since inception. “We have returned R600 million of dividends in four years, and that is resonating with institutional investors,” Sarang said.
The firm plans to double assets under management to R6 billion within two years and expand to R10 billion by 2029. Revego has identified up to R10 billion worth of operational green energy projects in South Africa and an additional $100 million pipeline elsewhere on the continent. The fund will prioritize domestic opportunities in the near term.
“We are retaining the focus on South Africa because the pipeline is so big,” Sarang said, adding that at least one sub-Saharan project outside the country could be added within the next 24 months.
South Africa is gradually retiring coal-fired plants that supply most of its electricity and plans to replace capacity with a mix of gas, renewables, and storage under the government’s latest energy roadmap.
Revego said it may consider a public listing once assets under management reach between $750 million and $1 billion. “At that size and with a sub-Saharan African focus, that would be an ideal time for listing,” Sarang said.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
