South African exec Derrick Msibi’s Stanlib plans $160-million investment in Africa’s renewable energy

Stanlib Asset Management, one of South Africa’s top investment firms, led by business executive Derrick Msibi, has unveiled plans to invest $160 million in bridging the funding gap for major renewable energy initiatives across the African continent through a new fund — the Stanlib-Khanyisa Energy Transition Fund.

In an official statement, Stanlib disclosed that the new fund’s primary objective is to mobilize capital from long-term investors — aiding South Africa’s energy transition needs and potentially extending its impact across the continent.

The Stanlib-Khanyisa Energy Transition Fund is a proactive response to the concerns raised by developing countries at COP 28, addressing the urgent need for sufficient, predictable, and at-scale support for climate actions and just transitions.

Insights from Johan Marnewick, Head of Stanlib’s Credit Alternatives

Johan Marnewick, head of Stanlib’s Credit Alternatives and one of the Fund’s portfolio managers highlighted the fund’s role in facilitating easier access to capital for the energy transition on the continent — he described the current state of the energy transition as a disruptive technological revolution demanding substantial capital.

Marnewick explained, “These energy transition assets are often not available on listed, more traditional markets and provide access to real economy business opportunities that have diversification benefits for investment portfolios.”

Stanlib’s Khanyisa Energy Transition Fund accelerates Africa’s green agenda

The Stanlib-Khanyisa Energy Transition Fund will target various energy transition assets, including renewable energy, decentralized energy, gas as a transition fuel, critical minerals, green hydrogen infrastructure, and the revolutionary changes in transport supporting the shift to hybrid and electric vehicles.

Stanlib Asset Management, with Msibi at the helm, manages more than R600 billion ($32 billion) in assets as of Dec. 2022. The Stanlib-Khanyisa Energy Transition Fund is part of Stanlib’s Khanyisa Impact Investment Fund suite — this initiative underscores the firm’s dedication to making a positive impact on social and environmental issues.

As Stanlib Asset Management continues to position itself as a leader in sustainable investment, the Stanlib-Khanyisa Energy Transition Fund represents a pivotal step towards advancing Africa’s renewable energy landscape and contributing to a greener, more sustainable future.