Norwegian investment fund for developing countries, Norfund, and development finance institution, the Commonwealth Development Corporation (CDC), have announced a joint investment of R600 million to expand clean power generation in South Africa.
Norfund and CDC will be investing R360 million and R240 million, respectively, in H1 Capital – a South African-based renewables investment and development company. The investment will expand renewable power generation, improve clean infrastructure, while enabling H1-Capital to fund over 2.4GW of new renewable projects.
Soon to be renamed to the British International Investment, the financial commitment aims to enhance access to clean energy across the entire country cost-effectively, thus, accelerating economic growth. Backed by climate pledges made at COP26 in 2021, the investment commitment deepens UK-Africa relations while driving South Africa’s energy transition.
“South Africa’s target to generate 20 GW of new renewable capacity over the next ten years is indicative of the country’s bold steps toward securing a net-zero future for itself”, commented H.E. Vicky Ford, UK Minister for Africa, adding that, “Investments like this reaffirm and follow on from the commitment we have made to South Africa’s low-carbon transition through the $8.5 billion multi-donor Just Energy Transition Partnership.”