Predictable investment management is driving renewable energy growth in South Africa

In a significant step towards strengthening South Africa’s renewable energy sector, Prescient Investment Management (PIM) has reaffirmed its commitment as a leading financier of renewable energy infrastructure projects. PIM has provided significant equity financing to Reatile Renewables Virginia (RF) Proprietary Limited (Reatile), strengthening its position in leading transformation initiatives in the nation’s energy landscape.

The collaboration, facilitated through the Prescient Clean Energy and Infrastructure Debt Fund (CEIDF), represents a key step in the development of renewable energy projects in South Africa. The financing injection enables Reatile to acquire a 31.5% stake in Ursa Energy (RF) Pty Ltd, a 240 MW solar farm located in tender window 6 of the Renewable Independent Power Producer Procurement Program (REIPPPP).

Luzuko Nomjana, portfolio manager at PIM, highlighted the fund’s commitment to filling infrastructure gaps and supporting solid economic growth in South Africa. Nomjana said: “This partnership with the Reatile team exemplifies our commitment to driving transformational transactions that advance sustainability.”

The transaction highlights PIM’s experience of engaging in renewable energy projects, with CEIDF having previously committed over R4 billion to 30 similar initiatives. These investments added 2.2 gigawatts of clean energy to the grid, equivalent to powering one million average households in South Africa.

Despite the enormous potential for renewable energy investment in South Africa, progress is hampered by challenges such as corruption, poor governance and political instability. Conway Williams, chief lending officer at PIM, emphasized the importance of responsible investing practices in addressing these challenges. Williams stated: “We know we have a responsibility to ensure that our investments not only deliver returns for our clients, but also deliver tangible benefits to South African society.”

The partnership between PIM and Reatile exemplifies the potential of private sector investment to drive sustainable development and address pressing energy challenges. As South Africa seeks to achieve its renewable energy targets, initiatives such as these play a key role in shaping the country’s energy future, while also making a significant social and economic impact.

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