by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – A R1 billion investment into the Revego Africa Energy Fund has been hailed as a major boost for South Africa’s renewable energy infrastructure, strengthening efforts to stabilise electricity supply and support long-term economic growth after years of debilitating power shortages.
Revego Fund Managers announced on 27 January 2026 that British International Investment (BII), the United Kingdom’s development finance institution, and Alexforbes will each commit R500 million to the fund.
The investment, subject to exchange control approval, marks Revego’s first capital raise since inception and increases its assets under management to R3 billion.
The capital injection will enable the expansion of Revego’s existing portfolio of ten renewable energy projects across South Africa, while also supporting new high-quality assets aligned with the country’s energy transition.
The current portfolio is expected to eliminate approximately 2.5 million tonnes of greenhouse gas emissions in the 2025 financial year, underscoring the environmental and economic impact of the investment.
“This deal marks a pivotal milestone for both investors and South Africa’s climate infrastructure,” said Ziyaad Sarang, Chief Investment Officer at Revego.
“Investments like this are essential for de-risking climate projects, supporting sustainable infrastructure, and driving long-term economic growth.”
He added that the transaction demonstrates the untapped potential of renewable infrastructure as an institutional asset class offering inflation-linked returns.
Reliable energy supply is central to industrialisation and economic development. When electricity constraints ease, manufacturers can operate at full capacity, new industries can be established, and investment confidence improves.
South Africa’s prolonged load shedding over the past decade, driven by ageing coal plants, maintenance backlogs and capacity shortages, has constrained growth, disrupted production and cost the economy billions of rand annually.
Businesses have been forced to rely on costly diesel generators, while households have endured repeated outages.
Investments such as the Revego transaction are designed to address these challenges by expanding generation capacity, diversifying the energy mix and reducing reliance on overstretched public infrastructure.
Renewable projects can be deployed faster than traditional power stations, helping to stabilise supply while supporting job creation and skills development.
BII said its participation sends a strong signal to global investors.
“As we evolve our climate finance approach in Africa, we remain committed to supporting a burgeoning market for renewable assets,” said Chris Chijiutomi, Managing Director and Head of Africa at British International Investment.
“By unlocking liquidity, we enable early-stage developers to recycle capital into new greenfield projects, which is key to accelerating the region’s energy transition.”
Alexforbes said the investment aligns with its Infrastructure Impact Fund-of-Funds, which targets long-term, inflation-beating returns while addressing critical infrastructure gaps.
“Our participation in the Revego fund underscores our commitment to driving South Africa’s infrastructure and energy transition,” said Gyongyi King, Chief Investment Officer for Private Markets at Alexforbes.
Over four years of operation, the Revego Africa Energy Fund has delivered solid performance, achieving a Distributions to Paid-In ratio of 0.37 as at 30 September 2025.
With a pipeline of R10 billion in investable assets, industry leaders believe the sector is poised for rapid expansion.
As South Africa works to end load shedding and reignite economic growth, strategic investments in renewable energy are increasingly seen as vital to powering industrialisation, strengthening energy security and supporting inclusive development.
– CAJ News