Norwegian development finance institution, Norfund and the UK’s CDC Group have partnered to invest ZAR 600 million in South African Black-owned renewables investment and development company, H1 Capital. The funding will enable H1 Capital to fund a pipeline of over 2.4 GW of new wind and solar projects, generating approximately 6,400 GWh per year.
The deal was announced today at Scatec’s Cape Town office with the attendees including UK Minister for Africa, Vicky Ford, Norwegian Minister of International Development Anne Beathe Tvinnereim, CDC Group’s CEO Nick O’Donohoe, Norfund’s CEO Tellef Thorleifsson, and Benjamin Boddy, Consul General of the British Consulate.
“We are delighted to once again partner with Norfund on this investment in H1 Capital, which will help increase clean energy access for people, communities, and businesses across South Africa,” said Nick O’Donohoe, Chief Executive of CDC Group.
The investment commitment is expected to enhance the economic participation of wider communities, and marks CDC’s first direct investment in a Broad-based Black Economic Empowerment (BBEE) company in South Africa.
Backing clean energy projects in Africa
The transaction according to the two DFIs represents their shared joint vision to mobilise climate finance for Africa and back clean infrastructure projects across the continent. Norfund and CDC – soon to be renamed British International Investment (BII), hope that the investment will help to improve access to clean and affordable energy in South Africa.
Speaking at the announcement ceremony, Anne Beathe Tvinnereim, Norway’s Minister of International Development, said: “the new Norwegian climate investment fund managed by Norfund will be our most efficient tool to help accelerate the global clean energy transition, making it possible to base necessary development on renewable energy and limit the climate crises devastating impacts on the world’s poor.”
“I am confident that this first investment under the new climate mandate will be the first of many mutually beneficial partnerships that contribute to a just transition in South Africa and in the other markets that Norfund aims to prioritise,” she added.
Reyburn Hendricks, Chief Executive Officer of H1 Capital, weighed in saying; “South Africa needs access to long-term, patient capital to develop the large-scale energy projects required for reliable, clean power supply and economic development. H1 hopes that the partnership fostered with Norfund and CDC can be replicated with other players and projects in Sub-Saharan Africa”.