According to Bloomberg Business, the Revego Africa Energy Fund has raised 1 billion rand, which is about $62 million, in its first capital round since launching in August 2021. The money comes from a 500 million rand investment by UK development bank British International Investment (BII) and a matching 500 million rand from South African pension administrator Alexander Forbes. This brings the fund’s total portfolio to 3 billion rand. Chief Investment Officer Ziyaad Sarang says the cash will be used to finish the 150-megawatt Springbok solar plant and finance five wind-power facilities. The fund has also met its target yield of inflation plus 5% to 7% since it started, paying out 600 million rand in dividends over four years.
The South Africa-First Strategy
Here’s the thing: even though Revego has a regional “Africa” name, it’s betting almost entirely on South Africa for now. All ten of its current investments are there. Sarang basically said the pipeline of operational green projects in South Africa is so big—up to 10 billion rand worth—that it makes sense to stay focused. They do have about $100 million in projects lined up elsewhere on the continent, but South Africa’s energy crisis and its position as the most industrialized nation in sub-Saharan Africa create a unique and urgent opportunity. It’s a classic case of going deep where you know the terrain best, especially when that terrain is desperate for reliable power.
The Institutional Investor Pitch
So how do you get big pension funds and development banks to write huge checks? You show them consistent, inflation-beating returns. Revego’s track record of delivering those dividends is what Sarang says is “resonating.” It’s not just a feel-good green story; it’s a solid infrastructure investment story with a green tint. And the structure is clever. That extra 250 million rand from BII, unlocked when another investor matches it, creates a built-in incentive for more capital to join. It’s a vote of confidence that also pressures others to get in. For companies building complex industrial assets like solar farms and wind facilities, securing reliable, long-term capital partners is everything. It’s the bedrock these projects are built on.
The Exit Roadmap and Continental Ambitions
The long-term plan is pretty clear: grow and then go public. Sarang wants to double the fund to 6 billion rand in two years and hit 10 billion in three. Once assets under management hit $750 million to $1 billion, they’d seriously consider a listing. That would provide liquidity for early backers like Investec and the Eskom pension fund and could open the floodgates for even more capital. But they do see a bigger African future. Sarang expects to have at least one project outside South Africa on the books within 24 months. The continent’s energy transition is a massive, multi-decade play, and Revego is positioning itself as a early, financially-savvy leader. If you want to follow this space, you can check out the Next Africa podcast on Apple, Spotify, or YouTube.
