Nedbank Group, in collaboration with the Norwegian investment firm Norfund, is set to acquire a “substantial minority” stake in Pele Energy Group, a renewable energy company co-founded by former JPMorgan Chase & Co banker Gqi Raoleka. This strategic investment will amount to US$31 million (approximately R573 million), as confirmed by Pele Energy’s Chief Financial Officer, Matt Wainwright.
This investment represents the second phase of a larger financial transaction in which Pele Energy successfully raised $135 million through a structured loan arrangement involving Nedbank, Norfund, and South Africa’s Industrial Development Corporation (IDC). While Wainwright did not disclose the specific size of the stake being acquired, he emphasized the significance of this investment in facilitating further funding opportunities for Pele Energy.
According to Wainwright, the transaction establishes a robust platform for Pele Energy to pursue additional capital, with the company aiming to secure between R2 billion and R3 billion over the next two years. This ambitious funding strategy comes at a time when Pele Energy and other developers of clean power plants are capitalizing on the growing demand from energy-dependent companies in South Africa seeking to achieve self-reliance in energy production.
Although the country has experienced a relatively stable electricity supply recently, it previously faced frequent rolling blackouts until last year. The transition to renewable energy is crucial for South Africa as it moves away from a coal-dependent grid that has historically generated over 80% of its electricity. Wainwright highlighted that South Africa will require at least 30 gigawatts (GW) of renewable energy to meet the evolving demands of its power grid, which includes the integration of battery energy storage projects.
In December, Pele Energy and its partners successfully secured bids for six out of eight selected projects under a government initiative aimed at procuring renewable energy. Wainwright indicated that the company anticipates these projects to reach closure between September of this year and March 2026. He stated, “Given the scale of infrastructure and investment needed for renewable energy expansion, having strong financial partners is essential to accelerate project development while ensuring sustainable growth.”
