UK development finance institution British International Investment (BII) and financial services firm Alexforbes have each made a R500-million investment into renewable assets investment management firm Revego Africa Energy Fund.

The funding will allow Revego to expand its portfolio of ten renewable-energy projects across South Africa and invest in new, high-quality renewable-energy assets that support South Africa’s energy transition.

This is the fund’s first capital raise since inception and increases Revego’s assets under management to R3-billion.

Revego states that the contributions by BII and Alexforbes lay the groundwork for a deeper, more liquid secondary market for renewable-energy assets in South Africa, adding that funds such as Revego create structured pathways for ownership to transition from developers to long-term investors, thereby unlocking liquidity and scale.

The deal also reflects rising institutional demand for climate-focused investments and addresses a significant funding gap in the sector.

“Investments like this de-risk climate projects, support sustainable infrastructure and drive long-term economic growth. Beyond the immediate impact, they help build and scale an asset class suited to institutional investors, while deepening a secondary market historically overlooked by investors,” says Revego chief investment officer (CIO) Ziyaad Sarang.

Sustainable infrastructure is vital to South Africa’s growth and resilience. By accelerating investment in sustainable infrastructure, South Africa can drive job creation, energy security, and inclusive growth, thereby aligning with global priorities as Africa’s energy transition takes centre stage at COP30 and the G20, he says.

The participation of BII encourages further participation and helps to scale climate action across the country and beyond, he adds.

“This investment deepens our support for Revego to build a liquid secondary market for renewables in sub-Saharan Africa. By unlocking liquidity, we enable early-stage developers to recycle capital into new greenfield projects,” says BII Africa head and MD Chris Chijiutomi.

“As we evolve our climate finance approach in Africa, we remain committed to supporting a burgeoning market for renewable assets,” he adds.

“Alongside Alexforbes Investments, we are establishing a new asset class that mobilises institutional capital and strengthens local markets, which is key to accelerating the region’s energy-transition plans,” says Chijiutomi.

Strengthening Africa’s secondary energy market will be instrumental in mobilising institutional capital and driving long-term sustainable investment, says Alexforbes private markets CIO Gyongyi King.

“Our participation in the Revego fund underscores our commitment to driving South Africa’s infrastructure and energy transition, building on our legacy of innovation and impact in private markets,” she says.

“This transaction is a natural extension of Alexforbes’ strategy to unlock new opportunities for our clients and for the country’s sustainable growth.

“Revego’s position as a majority black-owned and -managed renewable energy fund manager also aligns strongly with our transformation commitments, enabling us to channel capital into projects that have both financial and measurable socioeconomic impact,” King says.

With a pipeline of R10-billion in investable assets, the market is poised for significant growth, says Sarang.

“Strategic capital will be key to mobilise projects, strengthen investor confidence and accelerate the country’s low-carbon transition. For investors seeking long-term, inflation-protected returns, the sector is ready to scale,” he says.

Private investment is key to rebuilding and future-proofing the nation by presenting opportunities to modernise economic, social and digital systems, he adds.