Airnergize Capital closes R3.89bn fund with R240m Development Bank of Southern Africa commitment
Airnergize Capital, the clean-technology investment platform of New GX Capital, says it has reached the final close of its first fund at R3.89 billion.
The Development Bank of Southern Africa (DBSA) committed R240 million as the fund’s lead development-finance institution, according to a statement issued by Airnergize Capital.
The investor group also includes New GX Capital, RMB Ventures, Standard Bank and Nedbank.
Airnergize Capital said it invests institutional and development capital in energy, water and gas infrastructure businesses across Southern Africa and the broader continent. It described the platform as black-owned and controlled, with a focus on measurable environmental and social outcomes alongside commercial returns.
Initial focus on solar and storage
The fund’s initial investments will target commercial and industrial solar and battery-storage assets in South Africa, sub-Saharan Africa and the Indian Ocean islands.
Its broader pipeline includes electricity generation, transmission-related infrastructure, water and gas, the statement said.
Mahlatsi Molokomme, principal investment officer at the DBSA, said the bank’s mandate was to mobilise capital towards infrastructure that supports inclusive growth.
“Backing a fund alongside commercial investors allows us to crowd in private capital rather than compete with it, which is exactly the kind of blended approach South Africa needs if it is going to close its infrastructure investment gap,” Molokomme said.
Khudusela Pitje, group chief executive of New GX Capital, said the final close demonstrated investor confidence in the platform.
“Each investor, including the DBSA, has added something different: balance-sheet strength, sector expertise and a development mandate,” Pitje said.
“We have built a platform that can turn this capital into operating infrastructure that moves the needle across energy, water and gas, and that contributes to energy security in South Africa and the region.”
Development finance and private capital
Dr Simphiwe Madikizela, a senior lecturer in economics at Unisa’s School of Graduate Business and Leadership, said the transaction should be viewed as more than a fundraising announcement.
“This is a significant clean-energy and infrastructure investment for South Africa,” Madikizela said.
He said the fund structure could support multiple projects rather than concentrating the full R3.89 billion in a single power plant.
The DBSA’s R240 million commitment represents approximately 6.2% of the total fund. However, Madikizela said its significance extended beyond the size of the contribution.
The DBSA’s participation could give other investors confidence that the platform had undergone institutional due diligence and that its projects had both developmental and commercial objectives, he said.
Madikizela said the investor group’s combination of a development institution and commercial financial institutions showed that renewable energy, battery storage and related infrastructure could generate financial returns while supporting development outcomes.
“South Africa does not have to choose between economic development and environmental sustainability,” he said. “If properly structured, clean-energy investment can achieve both.”
Madikizela concluded that South Africa cannot achieve sustained economic growth if electricity remains unreliable, expensive or constrained. “If properly structured, clean-energy investment can achieve both.The country has a huge infrastructure financing requirement, while government and development institutions have limited balance sheets. Therefore, the model of "development finance with commercial capital and private investment" becomes extremely important.”
Ulrich Joubert, an independent economist, said the investment could support infrastructure development across South Africa and sub-Saharan Africa.
He said the potential impact would depend partly on the cost of the infrastructure and how effectively the capital was deployed.
yogashen.pillay@nationalmg.co.za