Norfund and CDC Group invests in H1 Holdings

H1 Capital is a South African black-owned and managed renewable energy investment company with expertise in renewable energy and a deep commitment to energy sustainability. Norfund, the Norwegian investment fund for developing countries and CDC Group, the United Kingdom's development finance institution, has committed to invest Euro 35 million in H1 Capital. Norfund will invest Euro 21 million, and CDC will invest Euro 14 million to support the development of an additional 2.4 Gigawatt of wind and solar energy, generating approximately 6,400 GWh per year. Increased renewable energy supply would ensure that households and businesses have access to electricity, hence increasing productivity and promoting economic growth.

The deal reflects the DFIs' shared ambition to mobilize climate finance for Africa and to support clean infrastructure projects throughout the continent. The investment in H1 Capital reflects the UK and Norway's commitment to implementing their COP26 commitments - scaling up climate finance to Africa and deepening collaboration on solutions that address the continent's needs and the climate emergency.

South Africa's government has set a target of generating 20GW of additional renewable capacity over the next decade in order to address electricity shortages and decarbonize the country's power generation fleet. This investment will aim and accelerate the government's goals and actions toward achieving a low-carbon economy.

Highlights of South Africa

Co2 emissions: 7.6 metric tons per capita (2020)

Access to electricity: 85% as at 2019

Renewables as a % of total capacity: 17% as at 2020

Renewables as a % of total generation: 4% as at 2019