South Africa’s renewable energy scene just got a major lift. Nedbank Group and Norfund have poured $31 million into Pele Energy Group. This move aims to speed up the country’s shift to cleaner power. It’s a hefty step for a nation leaning heavily on coal. Here’s what’s going down, based on the SolarQuarter article from March 5, 2025, and other online sources.
The Deal Breakdown
Nedbank and Norfund snagged a “substantial minority” stake in Pele Energy. The investment totals $31 million, or R573 million. It’s the second part of a bigger financial play. Earlier, Pele secured a $135 million structured loan from Nedbank, Norfund, and South Africa’s Industrial Development Corporation (IDC). Matt Wainwright, Pele’s Chief Financial Officer, said, “The company will target additional capital of two to three billion rand over the next two years.” This cash injection strengthens Pele’s footing for growth.
- Investment Amount: $31 million (R573 million).
- Previous Loan: $135 million from Nedbank, Norfund, and IDC.
- Stake Size: Undisclosed but labeled “substantial minority.”
Why It Matters
South Africa’s power grid needs a shake-up. Coal generates over 80% of its electricity. Wainwright noted, “South Africa will need at least 30GW of renewables to support the emerging needs of the grid, including battery energy storage projects.” Pele’s stepping up to meet that demand. The company’s projects will help cut reliance on fossil fuels. It’s a push toward a greener future.
Pele’s Project Wins
Pele Energy’s been busy. In December 2024, they won bids for six out of eight projects in a government renewable energy program. These projects are set to close financially between September 2025 and March 2026. Wainwright added, “Given the scale of infrastructure and investment needed for renewable energy expansion, having strong financial partners helps accelerate project development while ensuring sustainable growth.” The new funds will power these efforts.
- Projects Won: Six out of eight in December 2024.
- Timeline: Financial close from September 2025 to March 2026.
- Capacity Goal: Pele aims for 5GW by 2027.
Who’s Behind Pele?
Pele Energy Group has roots in finance. Co-founder Gqi Raoleka, a former JPMorgan Chase banker, helped start it in 2009. It’s a 100% Black-owned independent power producer (IPP). The company develops, owns, and operates renewable projects. Past funding includes a R2.5 billion ($132 million) loan in 2023 from Nedbank, Norfund, and IDC. That deal backed plants like one for Anglo American Platinum.
- Founding: 2009 by Gqi Raoleka and others.
- Ownership: Fully Black-owned IPP.
- Past Funding: R2.5 billion in 2023.
South Africa’s Energy Context
The country’s energy needs are pressing. Frequent blackouts plagued it until recently. Now, companies want self-reliant power. Pele’s projects serve both the national grid and private clients. The government’s Renewable Energy IPP Procurement Programme (REIPPPP) drives this shift. Pele’s six new projects add 1.28GW with partner Infinity Power, per SolarQuarter.
What’s Next?
This investment sets Pele up for more. The $31 million bolsters their capital base. They’re planning to raise R2-3 billion soon. With Nedbank and Norfund’s backing, Pele’s poised to expand fast. South Africa’s renewable goals—30GW and beyond—depend on moves like this. The focus is on solar, wind, and battery storage to reshape the grid.
