Stanlib Asset Management has secured 5 billion rand (approximately US$295 million) in the first close of its Khanyisa fund, a major financing vehicle aimed at accelerating clean energy investment in South Africa.
The capital raise marks a significant milestone in the country’s transition toward a more sustainable energy mix, with funds coming from long-term institutional investors committed to supporting a just energy transition. The Khanyisa fund, launched in November 2023 with initial backing from Standard Bank and Liberty Group, is designed to channel capital into renewable energy infrastructure and related sectors.
According to Stanlib, the fund has already deployed capital into 14 operational renewable energy assets developed under South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP). This program remains the country’s primary framework for attracting private sector investment into renewable electricity generation and has played a central role in expanding capacity over the past decade.
Johan Marnewick, head of private fixed-income markets at Stanlib, described the first close as a key step in mobilizing development capital for energy infrastructure. He noted that the fund leverages the broader capabilities of the Standard Bank group to support long-term financing solutions in a sector that is critical to economic growth and sustainability.
The Khanyisa fund has an ambitious target of raising 18 billion rand (around $1 billion) in total. Once fully capitalized, it will finance a diversified portfolio of projects, including utility-scale renewable energy, decentralized power solutions, green hydrogen initiatives, and electric mobility infrastructure. These investments are expected to contribute to reducing carbon emissions, improving energy security, and supporting industrial development.
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South Africa’s energy landscape is undergoing a gradual transformation, driven by the need to address persistent power shortages, reduce reliance on coal, and meet climate commitments. While renewable energy capacity has grown rapidly in recent years, coal still dominates the electricity mix, accounting for nearly 81% of generation, according to data from National Energy Regulator of South Africa.
The expansion of renewable energy capacity has been notable. Installed capacity rose significantly in 2024, reflecting increased investment and the scaling up of renewable projects across the country. However, the transition remains uneven, with structural challenges including grid constraints, regulatory bottlenecks, and financing gaps continuing to slow progress.
Funds like Khanyisa are seen as critical in bridging these gaps by providing long-term capital tailored to infrastructure projects. By targeting both large-scale renewable installations and decentralized energy solutions, the fund aims to address diverse energy needs, including off-grid and embedded generation systems that can support businesses and communities.
The inclusion of green hydrogen and electric mobility in the fund’s investment scope highlights a forward-looking approach to energy transition. These sectors are expected to play an increasingly important role in decarbonizing industries, supporting export opportunities, and positioning South Africa as a key player in emerging global green value chains.
Analysts say the successful first close demonstrates strong investor appetite for sustainable infrastructure in Africa’s most industrialized economy. It also reflects growing confidence in the long-term prospects of the country’s energy transition, despite ongoing challenges.
Looking ahead, Stanlib plans to continue raising capital toward the fund’s target while expanding its portfolio of projects. The Khanyisa fund is expected to support job creation, infrastructure development, and the diversification of South Africa’s energy mix, contributing to both economic growth and environmental sustainability.
As South Africa navigates its transition away from coal dependency, initiatives like Khanyisa underscore the increasing role of private capital in driving the shift toward cleaner, more resilient energy systems.
South Africa has been accelerating efforts to transition from a coal-dependent energy system to a more diversified and sustainable power mix, driven by persistent electricity shortages, aging infrastructure, and climate commitments.
For years, the country has faced recurring power cuts—locally known as load shedding—due to constraints at the state utility Eskom, which generates the bulk of electricity from coal-fired plants. These challenges have highlighted the urgent need to expand generation capacity and invest in renewable energy sources such as solar, wind, and battery storage.
To address this, the government has implemented reforms to open up the electricity market to private investment. Key among these is the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), which has attracted billions of dollars in investment into renewable projects over the past decade. More recently, regulatory changes have allowed private companies to develop power projects without licensing constraints, further boosting investor interest.
In this context, green energy funds such as the Khanyisa Green Energy Fund play a critical role in mobilizing capital for infrastructure development. Managed by Stanlib, the fund is designed to channel institutional investment into renewable energy projects, supporting South Africa’s energy transition while offering long-term returns.
The push for green financing also aligns with South Africa’s international climate commitments, including its Just Energy Transition Partnership (JETP) with developed economies, which aims to mobilize billions of dollars to reduce emissions and support a shift away from coal while addressing social and economic impacts.
Despite growing momentum, challenges remain. Renewable energy projects require significant upfront capital, grid capacity constraints limit integration of new power, and regulatory and policy uncertainties can affect investor confidence.
