Revego Africa Energy Fund targets R1,5 billion JSE IPO

Revego Africa Energy Fund, an investor in South African renewable projects is looking to raise US$102 million (R1,5 billion) by April as South Africa’s renewable energy procurement programme gathers steam. The fund will be listed on Johannesburg’s stock exchange, according to Revego Fund Managers Chief Investment Officer Michael Meeser. 

We have already identified assets equal to that value and have actually signed purchase agreements

Michael Meeser, Revego Fund Managers Chief Investment Officer

The renewable energy fund is backed by Investec Ltd., the Eskom Pension & Provident Fund and UK Climate Investment.

South Africa is gearing up to procure 11,800MW of new power capacity which includes 6,8GW from pure renewable energy. State-owned utility Eskom Holdings SOC Ltd. has been struggling to meet South Africa’s energy demand resulting in Africa’s most industrialised economy bearing the brunt of power blackouts that have affected economic growth. Revego Fund Managers hope to be key participants in financing some of the upcoming independent power producer renewable energy projects through the fund.

According to Michael Meeser, the Chief Investment Officer at Revego, they plan to pay dividends and want to see the fund’s assets generate enough income to finance expansion plans. The fund will target inflows from investors seeking to do business with Black-owned firms in South Africa, taking advantage of government policies to help reverse the impact of racial segregation that ended in 1994.

“Things are picking up” in the sector, Meeser said. If South Africa is able to commit to longer timelines and give detail on required capacity, it could give more visibility to international companies and boost local manufacturing, Meeser said.

Revego plans to own a wide range of renewable projects to help reduce the fund’s risk. The company holds stakes in South African wind and solar power projects and is anticipating opportunities across sub-Saharan Africa, where nations such as Kenya and Tanzania are also investing in renewable-energy programmes.