Norfund and CDC back renewable power development in South Africa

Norfund, the Norwegian investment fund for developing countries, and CDC Group, the UK’s development finance institution (DFI), committed to invest ZAR 600 million ($39 million) in H1 Capital (Norfund – 360 million and CDC – 240 million) – a South-African renewables investment and development company.

The transaction represents a joint vision by the DFIs to mobilise climate finance to Africa and back clean infrastructure projects across the continent. The investment from Norfund and CDC, which will soon be renamed British International Investment (BII), will help to improve access to clean and affordable energy in South Africa. The increase in clean energy supply will provide consistent power to cities, villages, townships, businesses and farms, thereby increasing productivity and encouraging economic growth.

This investment will support the country’s clean energy goals, as it will enable H1 Capital to fund a pipeline of over 2.4 GW of new wind and solar projects, generating approximately 6,400 GWh per year.