Revego Africa Energy Fund has raised R1 billion ($62 million) in its first major fundraising round since 2021, reinforcing its ability to finance renewable energy projects across South Africa.
The round includes R500 million from British International Investment Plc (BII) and a matching R500 million from Alexander Forbes Group Holdings Ltd. With this injection, the fund’s portfolio reaches R3 billion. Ziyaad Sarang, Chief Investment Officer, noted that an additional R250 million could be unlocked if another institutional investor matches BII’s commitment.
The new capital will support the completion of the 150-megawatt Springbok solar plant in Free State province and fund five wind energy projects across the country.
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Launched in August 2021, Revego initially attracted backing from Investec Bank Ltd., the Eskom Pension and Provident Fund, and UK Climate Investments LLP, a joint venture between the British government and Macquarie Asset Management. All of the fund’s ten investments to date remain in South Africa, reflecting the country’s status as sub-Saharan Africa’s largest renewable energy market. The fund has consistently met its target yield of inflation plus 5% to 7%, returning R600 million in dividends over four years.
Sarang, who previously led infrastructure at Standard Bank Group Ltd., plans to grow the fund to R6 billion within two years and aims for R10 billion by 2029. Revego has already identified up to R10 billion in operational green projects domestically and $100 million in projects elsewhere in Africa, although its immediate focus remains local. A sub-Saharan project outside South Africa may be added within 24 months.
As South Africa phases out coal-fired power plants and diversifies into renewables and gas, Revego’s expansion reflects increasing institutional confidence in the country’s energy transition. Once the fund reaches $750 million to $1 billion in assets under management, a public listing could be considered.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
