Private equity fund set up to target clean energy, digital infrastructure in Southern Africa
A private equity fund has been launched by Scalar and Mergence Investment Managers to finance clean energy and digital infrastructure in Southern Africa.
The Africa Decarbonisation Fund I has a target size of $100-million to $150-million and will invest in energy-efficiency and/or decarbonisation projects in the commercial and industrial sector.
Some target investment areas include: on-site power generation; critical infrastructure utilities; smart grid technology; manufacturing energy efficiency; digital-infrastructure energy; industrial energy storage and battery storage; on-site electric vehicle infrastructure; commercial energy efficiency retrofits; blockchain or AI infrastructure; and aggregated virtual solar power purchase agreements.
Investee businesses will be put through their own incubator and accelerator programme by the Scalar-Mergence fund, providing training, as well as technical and financial assistance.
The two black-owned firms will target indigenous, women- and youth-led companies in the region and say that at least 25% of the fund’s investment will be into underserved communities.
Scalar International MD Hubert Gutsa says the fund’s targets include working together with all communities to reduce carbon emissions, support energy efficiency in buildings, and create up to 15 000 full-time jobs.
He notes that Scalar has also been selected as one of only five fund managers to form part of the International Climate Finance Accelerator’s current cohort, which will assist it with networking and fundraising.
Mergence Investment Managers chief commercial officer Semoli Mokhanoi says the combined teams have more than five years of collaboration and 20 years of experience in advising, modelling and structuring infrastructure transactions.
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