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AfrElec INVESTMENT AfrElec
Sasol launches €50mn venture capital
fund to facilitate decarbonisation
SOUTH AFRICA JOHANNESBURG-BASED integrated energy “As the world accelerates its energy systems
and chemical company Sasol has established a towards more sustainable systems through
venture capital fund, Sasol Ventures, to advance emerging and disruptive technologies, Sasol
its decarbonisation and 2050 net zero ambitions. Ventures places us in a position to access tech-
The fund will invest €50mn ($53mn) over nology opportunities that will contribute to
the next five years, making it the largest chem- transforming our business,” he added.
icals and industry venture capital fund in South According to Hanré Rossouw, Sasol’s chief
Africa. financial officer, Sasol Ventures presents a new
To grow its portfolio for the fund, Sasol has dynamic lever to the company’s strategy to pro-
partnered with Emerald Technology Ventures, duce sustainable energy and chemicals products
a specialised global venture capital firm, the for a modern society.
company said in a statement on February 21. “We look forward to leveraging our financial
Through this partnership, Sasol has also directly and intellectual capital through compelling and
invested in Emerald’s global energy transforma- investable prospects that will create value for
tion fund. Sasol and our stakeholders,” he said.
The collaboration will complement Sasol’s
existing research and technology capabilities. Sasol’s synthetic fuel
The fund will pursue investments in start-up and plant in Secunda, South
early-stage technologies that will enable Sasol Africa - the largest single
to meet the need for sustainable chemicals and emitter of greenhouse
energy solutions to decarbonise its business and gas in the world.
markets that it serves globally.
“We are very excited with the prospect of
Sasol Ventures playing a key role in our decar-
bonisation ambitions,” said Fleetwood Grobler,
president and chief executive officer of Sasol.
New fund for $92.5mn solar in Africa
AFRICA French fund manager RGREEN INVEST Investments in renewable energy globally
and investment advisor ECHOSYS INVEST grew by 9% year on year, reaching an all-time
have closed their new fund, the AFRIGREEN high in 2021, according to BloombergNEF.
Debt Impact Fund, raising €87.5mn ($92.5mn), However, investments dropped by 35% in
which will be used to finance on-and off-grid Africa, to just 0.6% of global renewable energy
solar power plants for small and medium-sized investments.
commercial and industrial consumers in Africa. AFRIGREEN will help bridge this funding
By displacing fossil fuel generation with solar gap through direct lending and asset-based
power, commercial and industrial consumers debt facilities for regional and international
will reduce electricity bills, increase reliability of developers as well as African commercial and
power supply and lower greenhouse gas (GHG) industrial companies to develop solar photo-
emissions and air pollution. voltaic energy infrastructure across Africa,
AFRIGREEN targets raising a total of with a particular focus on West and Central
€100mn from development finance institutions Africa.
and private investors. Further, AFRIGREEN will be able to offer
“Africa boasts 39% of the world’s total renew- long-term local currency financing in Ghana
able potential, and yet investment in renewable and Nigeria with support from the Interna-
energy has been lagging behind, for a set of rea- tional Development Association’s Private Sec-
sons that includes the lack of suitable financial tor Window Local Currency Facility. This is
instruments, which especially affects the most expected to significantly reduce the foreign
dynamic segment of the market, commercial exchange risk and materially increase the fund’s
and industrial solar users”, said Olivier Leruste, competitiveness.
president of ECHOSYS INVEST, the joint The first closing includes a commitment from
venture created to structure and manage the the European Investment Bank (EIB)and the
AFRIGREEN investment strategy. International Finance Corporation (IFC).
Week 09 01•March•2023 www. NEWSBASE .com P9
