Norwegian investment fund for developing countries Norfund has committed to invest R360-million in South African renewables investor and developer H1 Capital, while UK development finance institution (DFI) CDC Group will commit R240-million.
The transaction represents a joint vision by the two DFIs to mobilise climate finance to Africa and back clean infrastructure projects across the continent.
The investment from Norfund and CDC, which will soon be renamed British International Investment, will help to improve access to clean and affordable energy in South Africa.
The increase in clean energy supply will provide consistent power to South African cities, villages, townships, businesses and farms, thereby increasing productivity and encouraging economic growth.
It will also support South Africa’s clean energy goals, as it will enable H1 Capital to fund a pipeline of over 2.4 GW…