Nedbank and Norfund invest US$31M equity into SA’s Pele Energy

South African financial services group, Nedbank, and the Norwegian Climate Investment Fund managed by Norfund have invested US$31 million (R575 million) in equity into South African renewable energy independent power producer, Pele Energy Group (PEG). The investment is part of Pele Energy Group’s strategy to raise US$165M (R3 billion) in additional capital over the next 2 years. 

The equity raise was facilitated through an investment vehicle called Pele Energy Fund 1, with Nedbank and Norfund as key limited partners (LPs) and PEG as the general partner (GP). 

PEG highlighted that the Fund has created a flexible and scalable investment platform designed to support future large-scale energy projects and is structured to provide long-term capital for the company’s goal to be a key player in South Africa’s renewable energy sector.

“This transaction is a game-changer for the Pele Energy Group and the broader renewable energy sector,” said Gqi Raoleka, CEO of Pele Energy Group. “Having Nedbank and Norfund as strategic partners in our capital structure reflects their strong belief in our vision and capabilities. This backing enables us to accelerate project development, scale impact, secure new opportunities, and drive sustainable energy solutions that will have a lasting impact on Africa’s energy future.”

PEG emphasised that the collaboration with Nedbank and Norfund reflects a shared long-term vision among all stakeholders: to build a sustainable, impactful, and scalable framework for renewable energy investment across Africa. 

 “We have been impressed with the great work of Pele Green Energy and we are delighted to be part of this next step in developing the sustainable and renewable energy solutions South Africa needs to cover the country’s increasing demand for energy while avoiding increasing climate gas emissions,” said Bjørnar Baugerud, Head of the Climate Investment Fund in Norfund.

According to Norfund’s estimations, the investment will contribute to projects that will avoid 1.9 million tons of CO2 annually.