As South Africa grapples with ongoing electricity shortages and a heavy reliance on ageing coal-fired power plants, renewable energy remains critical to ensuring long-term energy security and economic stability.

With a strong secondary market emerging for renewable-energy assets, strategic investment and successful exits are becoming increasingly important in shaping the future of the country’s energy landscape.

In a significant milestone highlighting this trend, banking group Old Mutual Alternative Investments’ subsidiary African Infrastructure Investment Managers (AIIM) – through its IDEAS Fund – has successfully exited stakes in three prominent renewable-energy assets, in a transaction valued at over R750-million.

The assets include two solar PV projects and one wind project – both developed under South Africa’s Renewable Energy Independent Power Producer Procurement Programme.

The transaction involves the sale of AIIM’s 21% stake in the Jeffreys Bay Wind Farm, a 138 MW facility located in the Eastern Cape, to existing shareholders in the project, namely electrical engineering firms Enzani and Usizo.

AIIM has also exited its 10% stakes in both the 73 MW Kalkbult and 38 MW Linde solar PV projects in the Northern Cape, with renewable-energy company Gaia Renewables 1 acquiring these stakes.

“AIIM has been a committed investor in these high-quality renewable-energy assets since their financial close more than 12 years ago and they have delivered strong returns while contributing significantly to the sector’s growth. This successful exit reinforces AIIM’s strong track record in renewable energy, aligns with our strategic focus on majority-controlled investments and ensures value realisation for our investors,” says AIIM investment director Zaahid Ganey.

The assets involved were initially constructed to provide reliable and sustainable energy, under 20-year power purchase agreements with State-owned power utility Eskom, thereby supporting the country’s transition to cleaner energy. This exit highlights both the IDEAS Fund’s capability to realise substantial returns for investors and the strong appetite within South Africa’s secondary market for renewable-energy infrastructure.

Additionally, the assets have had a tangible social impact in local communities through cumulative social spend of more than R100-million since starting commercial operation, including charitable support for community projects or facilitating small business creation.

Renewable-energy investments have seen significant growth in South Africa over the last decade, driven largely by the government’s commitment to diversifying its energy mix and reducing carbon emissions. This growing market has created opportunities not only for initial investors but also for secondary buyers looking to enter established projects with proven performance.

The IDEAS Fund has been instrumental in pioneering renewable-energy investment in the region, setting benchmarks for financial returns and operational excellence.

“These pioneering renewable-energy projects, built with a robust and low-risk approach, have demonstrated an excellent operational track record and we are confident they will continue to deliver inflation-linked returns to our investors. With Gaia’s expertise, we also see exciting opportunities to further optimise and enhance the use of these assets in the years ahead,” says Gaia chief investment officer Hendrik Snyman.

“Enzani and Usizo are happy to be growing their renewable-energy footprint, in line with the objectives of the Ubuzwe Group. Jeffreys Bay Wind Farm is a fantastic asset and increasing our presence helps us get closer to this objective,” say Enzani CEO Bheki Lembede and Usizo MD Sakhi Dumakude.

The transactions have reached financial close, showcasing AIIM and the IDEAS Fund’s ongoing commitment to unlocking investor value and driving growth within South Africa’s renewable-energy sector.