The Norwegian investment fund for developing countries, Norfund, has invested $75-million (more than R1-billion) in South African independent power producer (IPP) and renewable-energy (solar, wind and battery storage) developer Mulilo, the latter has announced. This investment was managed through Norfund’s Climate Investment Fund.

Since 2023, Mulilo’s majority shareholder has been Danish group Copenhagen Investment Partners (CIP). The latter invested in Mulilo through its New Markets Fund I.

“We are very pleased to welcome Norfund as a strategic minority investor in Mulilo,” emphasised CIP partner Robert Helms. “This partnership is a testament to the strength and potential of Mulilo, and the progress achieved. Norfund’s investment not only provides valuable growth capital but also brings a highly reputable, government-backed partner with deep experience of the South African energy sector. Together, we will continue to accelerate the energy transition, support local communities, and deliver strong value for our investors.”

“We are delighted to welcome Norfund as a strategic partner,” highlighted Mulilo CEO Jan Fourie. “The support from CIP has been instrumental in positioning Mulilo as a leading IPP and attracting world-class investors. This investment is a testament to the confidence in Mulilo’s vision and our proven ability to deliver large-scale renewable-energy projects that advance South Africa’s energy transition, support local communities, and drive sustainable economic growth.”

The Norfund investment followed the recent extension to Mulilo of a R7-billion corporate facility by Standard Bank. With that facility providing a strong financial foundation for the company’s expansion programme, the Norfund investment gave it the ability to accelerate its project delivery.

Mulilo is currently building renewable-energy projects with a total capacity of 765 MW. It is planning to next year augment its construction portfolio with a further 1 GW of capacity. Its aim is to develop a total renewable-energy capacity of 5.5 GW. Financial close for the construction of the rest of this capacity is expected before the end of 2027.

“Norfund is proud to join forces with CIP and Mulilo in this landmark investment that will accelerate the deployment of renewable energy across South Africa,” affirmed Norfund CEO Tellef Thorleifsson. “Our commitment of $75-million reflects our confidence in the platform’s ability to deliver large-scale renewable-energy projects that support the transition to net zero.”