twitter Facebook Linkedin acp Contact Us

South African asset manager to invest in clean energy projects in sub-Saharan Africa

Stanlibs infrastructure fund will focus mainly on clean energy projects, in addition to water, power, transport, telecom and oil and gas ventures too. (Image source: ArtemyoLagalag/Flickr)

Johannesburg-based asset management firm Stanlib has decided to invest in equity stakes in private sector-developed projects through its infrastructure fund

Renewable energy development will be a primary focus of the fund, as well as investment opportunities in water, power, transport, telecommunications and oil and gas infrastructure projects.

The fund will invest in sectors that require third part capital and specifically, in projects that present a combination of risk and return. This forms a part of the company’s long-term strategy to strengthen alternative investment offerings across the continent, stated Stanlib.

Seelan Gobalsamy, CEO of Stanlib, said, “As we expand across Africa, we would like to focus on alternative assets and transactions that can make a real difference in South Africa and the continent. We have identified infrastructure as an area where we can have a great impact as infrastructure gaps are consistently cited as one of the biggest challenges to doing business in Africa. Through our investments, we aim to create employment and help grow the economies we operate in.”

The infrastructure fund, which is Stanlib’s maiden foray into infrastructure and private equity, has now achieved final close at US$103mn. Majority of the amount in the 10 year closed-ended fund would be channelled into South African infrastructure projects under development, with the remainder to be invested across sub-Saharan Africa (SSA). A second fund, focusing on post-construction and operational infrastructure assets, is also under development.

Stanlib’s focus has been on developing opportunities mainly in renewable energy, through the Department of Energy’s Renewable Energy Independent Power Producer Procurement (REIPP) programme. Through the REIPP, solar and wind power in South Africa are becoming important contributors to the national energy mix and Stanlib expects this trend to continue.

According to Greg Babaya, head of infrastructure investments franchise at Stanlib, the company provides a platform for alternative investments, which play an increasing role in institutional investment portfolios, considering private sector investment in public infrastructure is essential in South Africa and SSA as well.

The Bell team in Richards Bay consists of more than 800 machinists, welders, and assemblers. (Image source: Bell)

GFE Power Product’s extensive range covers generators from 10 kVA up to 3,000 kVA. (Image source: GFE Power Products)

The funding is the largest-ever equity raise in the minigrid industry according to Husk. (Image source: Adobe Stock)

The initiative will help African contractors participate in annual infrastructure investments. (Image source: Afreximbank)

ITS has evolved into a sophisticated systems approach, providing numerous opportunities to revolutionise road networks. (Image source: Adobe Stock)

Invest International’s Lara Muller; Ivory Coast Minister of Finance and Economy, Adam Coulibaly; and Ambassador Designate to Ivory Coast, Jeroen Kelderhuis. (Image source: Invest International)

The Yellow Metal Machine Rental team with some Wacker Neuson equipment. (Image source: Wacker Neuson)

Although displaying resilience, the report warns that African banks remain exposed to physical climate risks due to both sovereign and industry lending. (Image source: Adobe Stock)

WAA and VCMI will seek to establish regulatory frameworks to enable access to high integrity and fair voluntary carbon markets for WAA member countries. (Image source: Adobe Stock)

The parties will also promote the mutual exchange of information and expertise in the field of export credit policies and practices. (Image source: TBD Group)

Inside Condra’s Johannesburg factory: an overhead crane positions an electric motor during assembly of hoist and crab. (Image source: Condra)

IVECO is renewing its entire product range, all at once. (Image source: IVECO)

The MoU was signed alongside the Africa Health Business Symposium. (Image source: Africa CDC)

Both the IMF and EIU expect SSA to rank as the world’s second fastest growing economy in 2024. (Image source: Adobe Stock)

There has been a focus on the sugar industry. (Image source: Adobe Stock)

Evolving concept of energy security must address energy demand, system flexibility, technology access and infrastructure development, says IRENA. (Image source: IRENA)

World Bank & African Development Bank partner to provide electricity access to 300 million Africans by 2030, leveraging public-private investments. (Image source: Adobe Stock)

(L-R): Dr Diane Karusisi, CEO, Bank of Kigali and Dr Reda Helal, group managing director – processing, Africa and co-head group processing, Network International. (Image source: Network International)

At WFES, Gotion High-tech will showcase its latest products and leading green energy solutions at its booth. (Image source: Gotion High-tech)

The new Perkins 5012 is a full-authority electronic engine optimised and purpose-built for power generation applications. (Image source: Perkins)

SSAB will begin deliveries of the new products in 2026.

The key issues restricting sub-Saharan Africa’s manufacturing sector will be unpacked at Manufacturing Indaba later this year. (Image source: Adobe Stock)

Through the innovative solution, each vessel can fill two tank containers on average between two ports. (Image source: Maersk)

Hyphen is developing sub-Saharan Africa’s largest, most advanced and only fully-vertical integrated green hydrogen project. (Image source: Hyphen)

According to Liebherr, the Used Equipment Marketplace is extremely user-friendly. (Image source: Liebherr)

Electricity storage will be pivotal in unlocking renewable projects and meeting energy demand. (Image source: Adobe Stock)

With RFID, assets can be given unique digital identities that enable users to identify and locate them all at once, from a distance, in real time. (Image source: Brady)

Africa Data Centres and DPA SA have broken ground on their solar farm in the Free State. (Image source: Africa Data Centres)

A Cat PM310 Cold Planer in action. (Image source: Caterpillar)

A larger stockholding of WEG products facilitates ready access for customers. (Image source: WEG Africa)