STANLIB Launches Khanyisa Energy Transition Fund To Drive Green Investments In South Africa And Beyond

STANLIB, a leading asset manager, is introducing the STANLIB Khanyisa Energy Transition Fund, aiming to mobilize crucial capital from long-term investors for South Africa’s energy transition and future expansion across the continent. Johan Marnewick, head of STANLIB’s Credit Alternatives, emphasizes the fund’s role in providing accessible capital for the energy transition, aligning with the disruptive technological revolution.

The fund, seeded with R3 billion of Renewable Energy Independent Power Producer Programme (REIPPP) assets from Standard Bank and Liberty, addresses the key concerns voiced at COP 28, focusing on securing substantial, predictable, and appropriate support for climate actions and just transitions. With an initial scale and diversity from the REIPPP assets, the fund aims to grow into a $1 billion (R18.5 billion) initiative over time.

Targeting retirement funds, life insurance companies, fixed-income asset managers, and development finance institutions, the fund seeks to deliver compelling risk-adjusted returns through credit instruments. The portfolio includes investment-grade South African corporate debt, asset-backed finance, development, and project finance.

Kholofelo Molewa, lead portfolio manager, highlights the fund’s focus on energy transition assets, encompassing renewable energy, decentralised energy, gas as a transition fuel, critical minerals, green hydrogen infrastructure, and the evolving transport ecosystem supporting hybrid and electric vehicles.

Part of STANLIB’s Khanyisa Impact Investment Fund suite, the Khanyisa Energy Transition Fund aligns with the United Nations SDGs, underscoring STANLIB’s commitment to social and environmental impact. Molewa emphasizes the demand for carefully selected and monitored assets, reflecting the expertise and experience of STANLIB’s Credit Alternatives team, one of Africa’s largest and well-resourced credit teams.

The fund, managed by a team with over 350 years of collective experience, is positioned to extract value from the complex asset class through technical expertise, a rigorous investment process, and a focused approach to downside risk management. STANLIB’s commitment to green investments demonstrates a strategic alignment with global sustainability goals and reinforces its position as a leader in impactful financial solutions.