STANLIB Launches Khanyisa Energy Transition Fund to Raise $1 Billion for Green Energy Projects in Africa
South African asset manager STANLIB has launched the Khanyisa Energy Transition Fund, aiming to attract $1 billion by the end of 2028 to finance greener energy projects across Africa. The fund, not limited to renewable energy components, will focus on energy transition assets such as green hydrogen infrastructure, gas investments as a transition fuel, and critical minerals. Khanyisa received an initial seed investment of three billion rand ($159.47 million) from Standard Bank and insurer Liberty Holdings. The fund aims to contribute to fulfilling four of the United Nations’ Sustainable Development Goals.
Key Points:
Fund Launch: STANLIB has launched the Khanyisa Energy Transition Fund, targeting $1 billion in investments by the end of 2028 to support greener energy projects in Africa.
Sustainable Development Goals (SDGs): The fund aims to fulfill four of the United Nations’ Sustainable Development Goals, contributing to broader environmental and social objectives.
Focus Areas: Khanyisa will not be limited to renewable energy but will also focus on energy transition assets, including green hydrogen infrastructure, investments in gas as a transition fuel, and critical minerals.
Seed Investment: The fund received an initial seed investment of three billion rand ($159.47 million) in assets from Standard Bank and insurer Liberty Holdings.
Critical Infrastructure: The Khanyisa initiative is seen as filling the gap in government efforts to kickstart much-needed infrastructure development in the energy transition.
Access to Electricity: Asanda Tsotsi, Standard Bank’s Head of Project and Export Finance, highlighted the critical need for the energy transition, stating that over 561 million Sub-Saharan Africans have no access to electricity.
Implications
The launch of the Khanyisa Energy Transition Fund underscores the growing importance of sustainable and green energy investments in Africa. With a focus on various aspects of the energy transition, including renewable energy and critical minerals, the fund aligns with global efforts to address climate change and promote cleaner energy sources. The involvement of major financial institutions in providing the initial seed investment signals increased interest and support for sustainable initiatives in the African energy sector. The fund’s contributions to SDGs and addressing energy access challenges highlight its potential positive impact on both the environment and local communities.