Norfund, Norway’s development finance institution, and African Infrastructure Investment Managers (AIIM) have announced the establishment of Anthem, a 14 GW renewable energy platform headquartered in Cape Town. The platform merges two AIIM-owned companies—African Clean Energy Developments (ACED) and EIMS Africa—and represents one of the most ambitious renewable energy undertakings in South Africa to date. 🌞💡🏗️
A Strategic Alliance for South Africa’s Energy Transition 🌍🔋🌱
Anthem will focus on developing, financing, building, owning, and operating solar PV and onshore wind projects across five provinces in South Africa. From inception, Anthem will be among the largest renewable energy companies in the country, with:
- 2.7 GW of capacity across 17 operational projects, 4 under construction, and 3 in financing.
- An 11 GW development pipeline, making Anthem a central player in South Africa’s clean energy buildout.
The platform will also include Mahlako Energy Fund as a shareholder, bringing strong local investment and advisory expertise. Mahlako is 100% owned by Black South African women, underscoring the inclusive nature of Anthem’s ownership structure. 🤝🌟📈
Financing and Capital Recycling 📊 💰🔄🏦
Norfund is committing NOK 850m (EUR 72.6m) to the platform:
- NOK 685m from its Climate Investment Fund (CIF).
- NOK 170m from KLP Norfund Invest, a vehicle co-managed with Norwegian pension company KLP.
The investment is partially financed through capital recycled from CIF’s recent exit from the Kenhardt solar + battery project, which was sold to Standard Bank. That exit generated an annual return of 13% (ZAR-denominated), freeing up NOK 440m for redeployment.
This capital recycling model ensures that early-stage investments by development funds can later be transferred to private institutions, unlocking liquidity for new ventures while mobilizing private capital at scale. 🌍📉🔑
Why Anthem Matters for South Africa 🇿🇦🌬️☀️
South Africa’s electricity system is still heavily dependent on coal, which accounts for more than 80% of generation. Load shedding and supply disruptions have become routine, constraining economic growth. Anthem is designed to directly address this challenge by:
- Diversifying supply through large-scale wind and solar deployment.
- Reducing carbon intensity, with potential to avoid millions of tonnes of CO₂ annually.
- Lowering system costs, since renewables have no fuel input and declining LCOE.
By scaling up renewable infrastructure, Anthem can help balance reliability with sustainability—two urgent needs for South Africa’s power sector. ⚡📊🌱
Investor Confidence and Risk Management 📈🛡️💼
For renewable projects, almost all costs occur upfront. High capital costs and financing risks in developing markets often delay projects despite their long-term competitiveness. Anthem mitigates this by:
- Pooling assets across provinces for geographic and resource diversification.
- Leveraging Norfund’s concessional capital alongside private equity through AIIM.
- Securing bankable PPAs that provide predictable cash flows.
The result is a platform that is not only ambitious in scale but also structured to attract long-term institutional capital. 🌍🏗️💡
Looking Ahead 🔮🚀🌞
Anthem’s creation is a milestone for South Africa’s energy transition. By consolidating proven players like ACED and EIMS Africa, and adding international and local investors, the platform sets the stage for accelerated renewable deployment at an unprecedented scale.
For South Africa, the implications are profound: Anthem could provide cleaner, cheaper, and more reliable energy while reducing dependence on coal. For investors, it demonstrates how blended structures, capital recycling, and strong partnerships can deliver both financial returns and systemic impact. 📊🤝⚡
Conclusion ✅🌍🌟
With 14 GW of planned renewable capacity, Anthem is positioned to become one of Africa’s largest renewable platforms. Backed by Norfund, AIIM, and Mahlako, it embodies the new model of how development finance and private capital can align to tackle energy security and climate challenges. South Africa’s transition away from coal may finally have a catalyst strong enough to deliver change at scale. 🔋⚡🌱
Finteam 