Norwegian development finance institution Norfund has committed $75 million to South Africa’s Mulilo Energy Holdings, reinforcing the country’s push toward renewable energy expansion. The investment, made through the Norwegian Climate Investment Fund, is intended to accelerate Mulilo’s portfolio of solar, wind, and battery storage projects, further positioning the company as a major player in Africa’s energy transition.
Mulilo, chaired by Jan Oberholzer, former Chief Operating Officer of Eskom, currently operates 450 megawatts (MW) of renewable energy assets. The firm also has an ambitious pipeline exceeding 30 gigawatts (GW) in solar, wind, and battery storage projects, with an additional 765 MW already under construction. The investment from Norfund reflects growing international confidence in South Africa’s renewable energy market and signals increased global interest in the continent’s clean energy sector.
Established in 1997 and owned by the Norwegian Ministry of Foreign Affairs, Norfund invests state-backed capital into projects across sub-Saharan Africa that drive sustainable growth and job creation. Mark Davis, Executive Vice President for Renewable Energy at Norfund, said the investment aligns with the institution’s mission to support Africa’s energy transition and strengthen renewable infrastructure.
“Mulilo has demonstrated strong technical expertise and a clear vision for South Africa’s renewable energy future. This investment will help the company scale operations and deliver critical infrastructure that meets the region’s growing energy needs,” Davis said.
The transaction was advised by Standard Chartered, while Standard Bank has provided financial support through a corporate facility valued at approximately $400 million. Copenhagen Infrastructure Partners, a global investment firm focused on renewable energy, also holds a stake in Mulilo, underscoring the company’s appeal to international investors seeking to drive Africa’s clean energy revolution.
Under Oberholzer’s leadership, Mulilo aims to expand its footprint across South Africa and neighbouring countries. Oberholzer, who has chaired Mulilo since 2023, previously played a key role in major projects at Eskom, including the Koeberg Nuclear Power Station and Kusile Coal Power Station, providing him with extensive experience in managing large-scale energy operations. His strategic focus now centres on scaling renewable generation capacity while integrating energy storage solutions to ensure grid stability and reliability.
South Africa has set ambitious renewable energy targets, seeking to diversify its energy mix and reduce reliance on coal. According to the Department of Mineral Resources and Energy, the country aims to achieve 17.8 GW of new renewable energy capacity by 2030, a target that aligns with broader continental goals under the African Union’s Agenda 2063 and the African Renewable Energy Initiative.
Mulilo’s growing portfolio, including utility-scale solar, wind farms, and battery storage projects, directly supports these objectives. Analysts note that international investments such as Norfund’s $75 million injection are critical in bridging financing gaps, enabling large-scale deployment of clean energy infrastructure, and accelerating South Africa’s transition toward a low-carbon economy.
The investment also has socioeconomic implications, with the potential to create thousands of jobs across construction, operations, and maintenance of renewable facilities. Local communities are expected to benefit from enhanced energy access, skills development, and economic growth stimulated by expanded renewable energy operations.
By backing Mulilo, Norfund strengthens its strategic commitment to Africa’s green energy sector while positioning itself as a key partner in South Africa’s energy transition. The deal highlights the increasing role of development finance institutions in mobilising private capital for climate-aligned projects in emerging markets.
The transaction marks a significant milestone for South Africa’s renewable energy sector, signalling a continued shift toward sustainable power solutions and international collaboration. As Mulilo scales up its operations, the combined efforts of private investors, government support, and international development institutions are expected to advance Africa’s clean energy agenda, contribute to climate goals, and strengthen the resilience of regional energy systems.
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