UK Climate Investments (UKCI) plans a £28 million investment in a dedicated African renewable energy yieldco, Revego Africa Energy Limited.
Revego is managed by a newly incorporated majority black-owned fund manager. The investment vehicle will seek to acquire equity in operational renewable energy projects across sub-Saharan Africa.
With an intention to seek a listing on the Johannesburg Stock Exchange in H1 2019, the investment vehicle aims to demonstrate the investment potential of the region’s renewable energy sector. The targeted initial listing size of the investment vehicle is approximately R2 billion. The new vehicle is expected to generate significant interest from the institutional investment.
Claire Perry, UK Energy and Clean Growth Minister said “At home we’re world leaders in cutting emissions while growing our economy and abroad we’re sharing our expertise to unlock low carbon investments to help countries tackle and adapt to climate change. Strong climate action needs cooperation from the public and private sectors and this £28 million project is a great example of government action spurring on private investment in clean innovation, using our established track record in green finance to provide communities all over the world with reliable, clean power."
Richard Abel, Managing Director of UKCI said “More than half of the world’s population currently living without access to electricity are in sub-Saharan Africa. By helping to facilitate the recycling of development capital into new renewable energy projects, this green finance initiative represents an exciting opportunity to accelerate the deployment of clean generation capacity for the region."
Harriet Baldwin, UK Minister of State for Africa said, “The UK is a world leader in tackling threats to our natural environment. Since 2011, UK climate finance has helped over 47 million people to cope with the effects of climate change, and provided 17 million people with improved access to clean energy.
Africa is home to some of the fastest growing economies in the world. The partnership between UK Climate Investments and Investec, which will unlock capital in established green energy projects, is a great example of the UK private sector working to attract green finance investors to help realize the potential of African economies, while tackling climate change."