Southern Africa’s venture capital sector closed off 2024 with R13.35 billion in active investments across 1 325 deals.

For the third consecutive year, ICT-focused start-ups continued to attract the lion’s share of venture capital (VC), accounting for nearly two-thirds of total investment.

This, as data shows Southern Africa’s VC sector closed off 2024 with R13.35 billion in active investments across 1 325 deals, according to the 2025 SAVCA VC Industry Survey.

Conducted by the Southern African Venture Capital and Private Equity Association (SAVCA), in partnership with research firm VS Nova, the annual research initiative shows the ICT sector accounts for 65.9% of deal value, three times more than the next sector.

Within ICT, the top-performing sub-sectors were software (20%), fintech (15.9%) and online markets (7.6%), according to the survey.

Nicola Gubb, interim executive director of SAVCA, comments: “Behind these numbers lies the story of a maturing market, more sophisticated capital deployment, deeper investor networks, and an encouraging shift toward early-growth stage funding, especially Series A, which speaks to a growing confidence in scalable local innovation.”

Regional hubs, particularly the Western Cape and Gauteng, remain vital, with notable growth also coming from beyond SA’s borders, the study reveals.

It further highlights that there are encouraging signals in critical areas such as health tech, which rose to 20% of deal value – its highest share since 2015. This shift was driven by renewed investor interest in life sciences, biotechnology and medical devices.

“The consolidation of capital into ICT and health reflects a maturing, digitally-focused VC ecosystem that is aligned with global investment trends. It also raises important questions about sector diversification, which remains a priority for long-term sustainability.”

Overall, a total of R3.29 billion was deployed to start-ups in 2024, comprising R2.62 billion in equity deals.

In addition, the survey this year reported for the first time on debt made available by VC fund managers, alongside their equity investments. This amounted to R670 million for 2024.

Series A funding climbed to 42.5% of all deals – more than double the proportion recorded in 2023 – indicating a shift toward early-growth capital.

The number of investment rounds also climbed to 222, up 20% from the previous year, into 110 companies.

While the overall equity deal value declined year-on-year, the survey also indicated an increase in deal volume that reflects a broader diversification of funding activity, including more co-investors and growing use of alternative instruments like venture debt.

Commenting on the findings of this year’s survey, Reabetswe Mjekevu, investment principal at SA SME Fund, says the insights are reflective of the current downturn in the exit environment.

“However, the findings also point to a maturing VC landscape that is laying the groundwork for an environment that is ripe for stronger, more sustainable exits in the future, signalling a promising outlook for both investors and founders alike.”

The survey confirmed that exit activity remains a major constraint, with just three exits noted in 2024. Fund managers cited the lack of follow-on capital, limited buyer universe and regulatory hurdles, including exchange controls, as key barriers to exit.

To unlock the next phase of growth, survey respondents identified several strategic priorities, including attracting foreign direct investment, building international networks to help start-ups scale globally, and increasing the supply of quality, fundable deals.

VS Nova founder Stephan Lamprecht states: “South Africa’s VC landscape is showing promising growth, with renewed government involvement − particularly through fund-of-funds initiatives − being closely watched for its potential to transform the asset class and even encourage greater participation from pension funds and insurers.”

“If 2024 has shown us anything, it’s that Southern Africa’s venture capital sector is steadily shifting gears from promise to performance. I remain deeply optimistic about the future we’re building together,” Gubb concludes.

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Southern Africa’s venture capital (VC) sector closed off 2024 with a record R13.35 billion in active investments across 1 325 deals.

Despite global economic uncertainties and constrained exit environments, Southern Africa’s venture capital (VC) sector closed off 2024 with a record R13.35 billion in active investments across 1 325 deals, up 24% year-on-year, according to the 2025 SAVCA VC Survey.

Nicola Gubb, interim executive director of Southern African Venture Capital and Private Equity Association (SAVCA), said the findings reflect an industry that has demonstrated remarkable tenacity and resilience.

“Behind these numbers lies the story of a maturing market, more sophisticated capital deployment, deeper investor networks, and an encouraging shift toward early-growth stage funding, especially Series A, which speaks to a growing confidence in scalable local innovation,” she said.

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Adrian Dommisse, Founding Director of Dommisse Attorneys Inc.

Johannesburg, South Africa, 20 July 2025 – In a landmark move to strengthen South Africa’s venture capital (VC) ecosystem, a new industry-led initiative has been launched to develop a suite of standardised legal documents tailored specifically for the local VC market.

Spearheaded by a coalition of leading VC funds and legal professionals, the initiative aims to create open-source, best-practice legal templates that mirror globally recognised standards, particularly those used in the US, while being firmly grounded in South African legal and regulatory frameworks.

“This initiative is a game-changer for the South African VC industry. It will save time and legal costs, improve transparency for all parties, and ultimately help attract more local and international capital into early-stage businesses,” said Adrian Dommisse, Founding Director of Dommisse Attorneys Inc.

Sign up to one of the working groups.

Purpose-Driven and locally relevant

The initiative is guided by three key objectives:

• To improve efficiency and consistency in venture capital transactions across South Africa;
• To align with international investor expectations through familiar frameworks and terms;
• To build local legal capacity by creating accessible resources and training opportunities for lawyers entering the VC space.

Phase one: Building the Core

The first phase of the project is already underway and will deliver three foundational legal documents:

• Memorandum of Incorporation (MOI)
• Shareholders Agreement (SHA)
• Subscription Agreement

These documents are being adapted from widely used, open-source US templates –primarily the NVCA suite, stripped of jurisdiction-specific language and tailored to South African commercial and legal norms. Importantly, neutrality is a cornerstone of the drafting process, with no single law firm’s style dominating, ensuring broad industry acceptance.

Collaborative legal and investment leadership

Two dedicated working groups, comprising top-tier VC investors and seasoned lawyers, have been formed to steer the process. Their mandate includes:

• mapping international best practices to local frameworks,
• aligning on commercially standard terms, and
• ensuring legal robustness and accessibility in all outputs.

A model Term Sheet will accompany the suite and act as the conceptual “index” for all documents. Working groups will produce and refine each document with a strong emphasis on plain language, usability, and the consolidation of defined terms.

Looking ahead

Once finalised, the legal document suite will be made freely available to the industry –empowering startups, investors, and emerging legal professionals alike. A second phase is already under consideration to expand the library to include additional documents such as intellectual property assignments, director indemnities, and more, based on user feedback and evolving market needs.

This initiative represents a major milestone in South Africa’s journey towards a more scalable, efficient, and globally aligned innovation ecosystem. It promises to lay the legal groundwork for a new generation of high-growth, investable startups.

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The 2025 SAVCA Industry Awards will take place on Friday, 7 November 2025

This year, for the seventh consecutive time, the Southern African Venture Capital and Private Equity Association (SAVCA) will celebrate the transformative power of private capital. The 2025 SAVCA Industry Awards ceremony, set to take place on 07 November, will once again set the benchmark for the best in local entrepreneurship and innovation; boosted by the private capital asset class. SAVCA has now issued the final call for nominations, either from portfolio companies themselves or from their investment partners.

“Each year, we see the bar being raised higher than the year before. Likewise, the calibre of business leaders that we have the honour of celebrating, continues to inspire us as an industry body, as well as the investors who have real skills in recognising growth potential,” says Nicola Gubb, SAVCA’s Interim Executive Director.

Standard award categories (plus a brand new one)

The SAVCA Industry Awards has four categories, the first being for start-ups or companies supported by venture capital. Entrants in this category need to be less than 5 years old and be engaged in early-stage funding efforts (Series A or Series B, excluding seed/pre-seed revenue.

The second category is reserved for small companies with an enterprise value of under R200 million and revenue of under R200 million. Entering companies need to be established with positive operating cash flows.

Companies with an enterprise value and revenue of over R200 million (and under R1.5 billion) are eligible to enter the category for medium companies. Lastly, portfolio companies with an enterprise and revenue of over R1.5 billion can enter the fourth category, set aside for large companies.

This year, for the first time since the inception of the SAVCA Industry Awards, a new ‘GP Award’ category will be introduced. This award will recognise an individual from a fund management firm who has provided exceptional support to a portfolio company. To scoop this prestigious title, the GP professional must have been integral to the success of the transaction and to the subsequent growth of the portfolio company.

Nomination deadline just around the corner

All nominees must be headquartered in Southern Africa and able to show the demonstrated gains that have resulted from partnering with a private equity or venture capital investment firm, which must have exited in the past 18-24 months (leading up to December 2024).

After the nomination deadline (08 August 2025), all nominees will be reviewed. The judging panel – which consists of renowned business leaders and captains of industry – will release a shortlist of finalists for each category. These finalists will then be interviewed and individually assessed by the judges. The winners in each category will be announced at the SAVCA Industry Awards ceremony on 7 November 2025.

A word from the winners

Last year’s winners across all categories were testament to the resilience of local entrepreneurs and their relentless drive to excel – many times, against the odds. In particular, the SME sector, who are the backbone of our economy and drive job creation and innovation was celebrated. In this regard, hearX, who won in the Start-up and Venture Capital Award category, shared their encouragement for more nominations as we approach the upcoming 2025 Industry Awards. As a pioneering health tech company, hearX is committed to making hearing healthcare accessible worldwide. With a global footprint spanning over 190 countries and more than 2.4 million lives impacted, hearX exemplifies the transformative power of early-stage investment and innovation with purpose.

“Winning the SAVCA Startup Award for 2024 was more than a moment of recognition. It acknowledges the journey that hearX has taken from startup to global innovator and highlighted how far we’ve come with the trust and backing of our valued investors, partners, clients, and team. This award reminded us of the daily real-world change we’re creating and serves as inspiration for us to continue pioneering new ways in the hearing tech space.” says Nicole Myburgh, Marketing Lead at hearX Group.

As Vuyo Ntoi, SAVCA Chairperson concludes: “What we’re really looking for in this year’s nominations are portfolio companies who have stood out not only in terms of financial performance, but in how they’ve leveraged private capital to drive innovation, create jobs, expand into new markets, and build resilient, future-ready businesses.

We call on investor and investee companies to submit nominations – your success stories demonstrate the true value of the private equity and venture capital ecosystem in our region.”

Nominations can be made here:

https://research.krutham.com/jfe/form/SV_0xLkrDztxe5uEHc

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By: Southern African Venture Capital and Private Equity Association (SAVCA)

In a tough funding climate, many South African entrepreneurs might be wondering what they can do to make their businesses more appealing to investors. With signs of recovery in the venture capital (VC) and private equity (PE) sectors, there is growing interest in scalable, well-governed SMEs that show potential for high growth. However, competition for funding remains fierce, and founders must be prepared to meet increasingly rigorous investor expectations.

To unpack how entrepreneurs can improve their investment readiness, the Southern African Venture Capital and Private Equity Association (SAVCA) spoke to three members across the PE, VC, and hybrid spectrum: Tomi Amosun, Managing Partner at Summit Africa (PE), Janice Johnston, CEO of Edge Growth Ventures (VC), and Jade Buckton, Senior Associate at 27four Investment Managers (VC). Their insights provide a clear and practical roadmap for founders seeking to secure growth funding in 2025 and beyond.

What are investors looking for?

While investor priorities vary slightly across funding types, the fundamentals remain consistent: strong leadership, sound governance, and scalable models. For PE investors, operational excellence and investor alignment are crucial. “To become investment-ready, SMEs should understand the ‘why‘ behind seeking a private capital partner and be clear on investor fit. Not all investors are the same,” says Amosun. He adds that founders need to understand the implications of different investment instruments, as these dictate everything from return expectations to strategic involvement.

Johnston highlights the importance of scalability in the VC space. “Focus on business models that can grow quickly with limited marginal cost. Tech, platforms, and subscription-based services are naturally scalable,” she says, noting that early traction and clear product-market fit are more compelling than ideas without validation.

From a hybrid perspective, Buckton underscores the need for transparency and team strength. “Investors want to see accurate financials and a capable, committed leadership team. “Ineffective management is a common cause for funding applications to be declined,” she says. This applies to both early-stage startups and more mature SMEs seeking growth capital.

The investment case also improves when businesses show alignment with macroeconomic trends. According to Buckton, sectors such as renewable energy, fintech, and digital infrastructure are particularly attractive to both PE and VC investors, given their scalability and developmental impact. Johnston agrees, adding: “Funds are increasingly looking for innovation that solves real problems, particularly in underserved markets.”

What sends investors running?

Several red flags can derail a promising funding opportunity. For VCs, it often comes down to governance and clarity. “If a startup is not able to clearly demonstrate revenue streams or credible projections, or if it lacks a well-defined exit strategy, that’s a major concern an investor will look out for,” Johnston explains.

From a PE lens, Amosun cautions against operational immaturity, “SMEs often focus heavily on revenue and sales but can forget about internal systems, compliance, and succession planning. That imbalance can be risky when scaling,” he says. He also notes that personal and business finances should be clearly separated to avoid reputational and legal issues.

Buckton points to financial resilience as a key consideration. “Operating with only a couple of months of cash reserves is a red flag. It shows vulnerability to shocks and limited financial resilience,” she says. Overreliance on short-term debt, loss of key customers, or management opacity can also trigger investor concerns. Investors are looking for businesses with the right balance of ambition and operational readiness.

Smart funding, not just any funding

Chasing high valuations without substance can backfire. Buckton shares cautionary tales of startups that collapsed under inflated expectations. “A reasonable valuation gives you room to stumble and recover. Founders who optimise for hype can often end up with cap tables that leave them with little ownership and few options, especially if they raised multiple convertible notes at increasing valuation caps. Think carefully about the compounded dilution upon conversion,” she says.

Amosun notes that transparency and alignment should trump short-term appeal. “Smart investors are not just backing businesses but the people running them. If your story and values don’t resonate with the investor’s mandate, the relationship won’t last,” he says.

What steps can SMEs take to improve investor appeal?

Investors are looking for businesses with traction, transparency, and clear growth plans. Johnston recommends demonstrating product-market fit through real metrics like customer retention, usage, and revenue growth. “Even small wins show you’re solving a real problem,” she says.

Amosun advises strengthening internal systems and governance. “Ensure accurate, timely reporting and focus on optimisation and compliance, not just sales,” he says. He also encourages founders to tell a compelling growth story that aligns with investor timeframes. “A five-to-seven-year plan showing how capital will unlock value is more powerful than abstract ambitions.”

From Buckton’s perspective, being investment-ready also includes knowing your funding options. “Understand the variety of investment tools out there, from equity to blended finance. Choose what fits your business stage and goals,” she says, adding that non-financial support like mentorship and access to networks can be just as critical in early growth stages.

Finally, building relationships matters. All three experts encourage founders to attend industry events, engage with incubators, and use platforms that connect SMEs with capital. According to Johnston, “Founders who make themselves visible and are open to constructive feedback often stand out. Coachability is a signal that you’re resilient and investable.”

A strategic partnership

Meeting a checklist won’t attract private capital. Showing that your business is resilient, scalable, and aligned with investor goals, will. Founders who combine vision with operational excellence will be best placed to access the funding they need to grow. While investor sentiment may fluctuate, the fundamentals of strong business building never go out of style. Focusing on financial discipline, governance, market validation, and relationship building, will help today’s entrepreneurs turn investor interest into long-term partnerships that fuel real, sustainable growth.

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Tshepiso Kobile, SAVCA CEO

We regrettably announce the departure of our Chief Executive Officer, Tshepiso Kobile, who will be pursuing new professional opportunities. The SAVCA Board extends its appreciation to her for her leadership during a pivotal period for the organisation and the broader private capital industry.

Appointed during a time of transition, Tshepiso provided stability and strategic direction as SAVCA reoriented itself for the future. She led the recruitment and onboarding of a new executive team, helping to build internal capacity and position the organisation to serve an increasingly complex and evolving investment environment.

Under her leadership, SAVCA strengthened its voice in regulatory and policy discussions. With her at the helm, we played an active role in shaping elements of the Conduct of Financial Institutions (COFI) Bill and contributed to engagements with the Competition Commission and the Department of Trade, Industry and Competition (DTIC), particularly on public interest considerations in merger transactions. These efforts helped to ensure that private capital is appropriately considered in key policy frameworks.

Tshepiso also represented SAVCA at key international industry body engagements, helping to raise the profile of Southern African private capital on the global stage. During her tenure, SAVCA expanded its advocacy efforts and contributed to discussions on responsible investment, market development, and cross-border capital flows. A strong proponent of industry diversity, she supported initiatives that encouraged the advancement of women in private equity and venture capital and helped position the association as a platform for broader inclusion across the ecosystem.

The growth of SAVCA’s flagship conferences during her time – including the successful relocation of the annual Private Equity Conference to a larger venue to accommodate record attendance – speaks to her meaningful contribution. She has also played a key role in broadening our mandate to more intentionally include all providers of private capital – equity, mezzanine, and debt – ensuring a more inclusive and representative voice for the industry.
We thank her for her contribution to SAVCA’s continued relevance and effectiveness and wish her well as she embarks on the next phase of her career.

The board will soon undertake a process to recruit a permanent CEO. In the interim, to ensure operational continuity and momentum on strategic initiatives, the board has seconded one of its directors, Nicola Gubb, to act as Executive Director in the interim. Nicola is a seasoned executive and director with decades of experience in private equity and broader financial services, including leadership roles at WDB Investment Holdings as Chief Investment Officer, and earlier positions at Vunani Capital, RMB Fund Managers and HSBC. She will support SAVCA’s senior managers in maintaining the Association’s day-to-day operations and driving its key programmes until a permanent CEO is appointed.

For further enquiries, please contact: info@savca.co.za

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• Scalar International is one of only five fund managers chosen out of 66 as part of the 2024 cohort of the International Climate Finance Accelerator, a programme powered by Accelerating Impact.
• The Africa Decarbonisation Fund I, managed by Scalar and Mergence Investment Managers in partnership, will invest in energy-efficient / decarbonisation projects in the private commercial and industrial (C&I) sector within SADC, with a focus on women- and youth-led SMEs.
• The target is to reduce 1 GT of carbon emissions by 2030; achieve energy efficiency in 30,000 buildings by crowding in investment of at least $100 million; and create 15,000 full-time jobs.

Hubert Gutsa, CEO, Scalar

Cape Town, South Africa:- Scalar International, a black-owned international venture capital and private equity firm, has been selected by Luxembourg’s International Climate Finance Accelerator (www.icfa.lu/) to form part of its 2024 cohort. The ICFA aims to accelerate emerging fund managers to advance sustainability-based finance solutions for carbon reduction, mobilising international institutional capital to build a stronger and more integrated climate finance system. Out of an initial expression of interest by 66 firms, 48 were selected for consideration with a final five selected. Scalar has partnered with Mergence Investment Managers to launch a fund-in-concept, called the Africa Decarbonisation Fund I.

Mergence is a leading black-owned institutional fund manager with a strong impact investing track record in SADC. The fund  has a target size of $100-150 million and is also one of only 10 so-called “Article 9” funds worldwide, launched recently by the EU’s Sustainable Finance Disclosure Regulation (SFDR) to facilitate attraction of Limited Partners to private equity funds.

Via the fund, the Scalar and Mergence impact partnership will invest in energy-efficient / decarbonisation projects in the private commercial and industrial (C&I) sector by supporting the emergence of first-tier, indigenous, women- and youth-led companies that are developing new technologies in clean energy solutions and digital infrastructure. At least 25% of the fund’s investment will be into underserved communities.

The fund’s first stage of investments aims to target C&I decarbonisation and energy efficiency in Southern Africa. The pipeline of projects is primarily in the data centre and manufacturing sectors, which have seen a 40% decrease in grid energy reliability due to their reliance on the regional energy pool. Most SADC member states consume their energy from the Southern African Power Pool, which is primarily 40% hydro energy and 50% coal-powered energy.

The fund is at advanced negotiations with European Development Finance Institutions in support of the EU-Africa Global Gateway Investment Package. The fund seeks to work with local pension funds in support of South Africa’s national determination contributions, together forming a Global Just Transition Partnership using the Scalar platform.

Some target investment areas include:

• On-site power generation
• Critical infrastructure utilities
• Smart grid technology
• Manufacturing energy efficiency
• Digital infrastructure energy
• Industrial energy storage, EV, battery storage
• Enterprise on-site electric vehicle infrastructure
• Commercial energy efficiency (equipment retrofit)
• Blockchain/AI infrastructure that supports digital transformation
• Aggregated virtual solar power purchase agreements (PPAs)

Investments will also be guided by four of the United Nations Sustainable Development Goals (SDGs) – 7 (affordable and clean energy); 8 (decent work and economic growth); 10 (reduced inequalities); and 13 (climate change).

Investee businesses will be put through their own incubator and accelerator programme by the Scalar-Mergence fund, providing training and technical as well as financial assistance. The fund’s targets include working together with all communities to reduce 1 GT of carbon emissions by 2030 (equivalent to 100,000 MW of energy); achieving energy efficiency in 30,000 buildings by crowding in investment of $100 – $150 million; and job creation of 15,000 full-time positions.

Commenting on the market opportunity, Hubert Gutsa, Managing Director of Scalar International, says: “Africa holds 60% of the best solar resources globally, yet has only 1% of installed solar photovoltaic capacity. Furthermore, women make up 48% of the global workforce yet account for less than 20% of labour in the renewable energy sector.

According to the International Energy Agency, 43% of the African continent’s population lack access to electricity. Many African governments are struggling with power infrastructure, with South Africa’s power utility being no exception.

Massive investment is required, and we are delighted, in our partnership with Mergence, to have been accepted into the ICFA’s current cohort, whose platform will help us as General Partner to network, fundraise, and attract Limited Partners. We believe we can make a real difference – by 2030, the electricity demand in Africa’s C&I sector is expected to grow by more than 270% compared to current levels”, said Mr Gutsa.

Semoli Mokhanoi, Chief Commercial Officer at Mergence Investment Managers, says: “We make a powerful partnership with Scalar. The teams have more than five years of collaboration and 20 years of experience in advising, modelling and structuring infrastructure transactions. At Mergence we have deep experience in private markets investing in challenging geographies, including in renewable energy, water, housing, transport, digital connectivity, property and health.

Transformation has a dual meaning in the context of our investments: transforming the ownership patterns of the clean energy and digital technology sectors in tandem with transforming the nature and extent of infrastructure access for inclusive economic growth and development,” said Mr Mokhanoi.

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During a thought-provoking panel discussion at the recent Southern African Venture Capital and Private Equity Association (SAVCA) Private Equity (PE) Conference, industry experts explored the current state of infrastructure in South Africa. The panel, moderated by Lungile Mashele, Sector Specialist in Energy and Infrastructure at the Public Investment Corporation (PIC), discussed issues ranging from demand and supply imbalances, funding gaps and project challenges, to suitable funding models and collaboration structures for public and private sector investors.

Challenges facing project development

There are several challenges that South Africa faces from an infrastructure development and investment perspective, notes Mameetse Masemola, Acting Head and Deputy Director-General of Infrastructure Investment Planning and Oversight at Infrastructure South Africa (ISA). “Key to this is the lack of focus and allocation of resources towards project preparation and planning, which results in an inadequate investment-grade infrastructure project pipeline.”

ISA plays a crucial role in assisting project owners – ranging from state-owned enterprises to water and energy authorities – with preparation and deal packaging to make projects viable for investment. “For National Treasury to consider these projects, baseline information needs to be in place, and we work closely with sponsors to ensure that happens,” Masemola added.

Budget constraints are another major challenge that Masemola raises. “While the ministry allocates capital over a three-year cycle, we have a R1.6 trillion infrastructure investment gap – this is the gap between the current project pipeline and the funding available.”

Innovative financing models for infrastructure

Blended finance has emerged as a critical tool in making “un-bankable” projects more attractive to investors. Refilwe Mokanse, an Infrastructure Finance Specialist at Infrastructure Finance, highlighted that their organisation currently has 26 blended finance projects in different stages of development. “Some are in advanced stages, going through due diligence, while for others, we are still engaging with the market to gauge interest,” Mokanse said. “Our mandate is to identify projects that are initially un-bankable, assess their feasibility, and structure them in a way that reduces risk and attracts financing.”

Expanding on the blended finance approach, Mokanse explained, “A blended finance model includes various sources of funding, such as grant funding from the government and viability capital from the Infrastructure Fund, which can take the form of a grant, a concessionary loan, equity or debt, depending on what is required to de-risk a particular project.

“The aim is to create an environment where the private sector can step in with the relevant funding. This could take the form of commercial finance, development finance institution (DFI) funding, multilateral development finance, and ideally, increased engagement with institutional investors to secure their participation in these projects,” he added.

To this point, public-private partnerships (PPPs) were identified as a critical mechanism for infrastructure investment, “PPPs create a strong opportunity for asset managers to provide funding either through the project SPVs or companies responding to the bids,” Mokanse noted. “We look at successful global models and assess their applicability to the South African market.”

In the energy sector, decentralisation has been a growing trend in recent years. From an investor’s perspective, Mosa Molebatsi, Senior Investment Associate at Mergence Investment Managers, explained that there are two buckets of projects in this regard. “On one end, larger off-takers like a mining company or manufacturing plant are looking to set up decentralised energy solutions to meet their energy demands off-grid. On the other hand, for the smaller portfolio players, we typically invest in aggregators that are driving projects in the sub-1MW space.” The latter model works as there is competition from international developers. The 3rd model, which is within the Residential space, has been lagging as the risk – return dynamics here are quite different.

Water infrastructure: A critical risk to business continuity

While energy has been a primary focus for South Africa, panellists stressed that water infrastructure is an equally pressing concern. “For the longest time, we’ve seen significant attention given to electricity, but water has often been neglected, especially at a corporate and industrial level,” said Mike Smith, Principal at The Water Fund. “This needs to change at a government, municipal and corporate level, because water is the single biggest risk to business continuity in South Africa. Without water, industry simply stops.”

The biggest funding gap, according to Smith, exists at the Critical National Infrastructure (CNI) level. “The CNI projects in the water space are extremely complex. Consequently, the transaction and due diligence costs that are required for those projects are difficult and expensive. This is compounded by the fact that at a CNI level, the projects are relatively small – often less than R100-million. We believe that project finance is the best approach here as it puts the vested interests and risks in the right hands – those of water service providers.”

Collaboration is key

Despite their varying viewpoints, panellists were all in agreement that greater collaboration between the public and private sectors is crucial for scaling up infrastructure investment. “We need to ensure projects get the buy-in they need from both sides to be bankable,” Masemola concluded.

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South Africa, 28 January 2025: Sanlam Investments is proud to sponsor Africa’s Green Economy Summit (AGES) 2025, scheduled to take place from 19-21 February 2025 at the Century City Conference Centre in Cape Town. AGES is a premier event designed to connect global capital with transformative green economy businesses and projects across Africa, ranging from entrepreneurial start-ups to large-scale national infrastructure initiatives.

Carl Roothman, CEO of Sanlam Investments, comments, “The theme of AGES 2025, Building a Climate Resilient Africa: Catalysing Investment and Innovation in the Green and Blue Economies, aligns perfectly with our sustainability north star.” “AGES presents a unique opportunity for global investors to engage with economically attractive high-impact African initiatives, unlocking new pathways for sustainable growth. Last year, investments were committed towards over 30 green projects valued at more than US$1.4 billion. This is why AGES is a vital platform for aligning capital with Africa’s green and blue economy goals. In 2025, we need a unified focus on investing in solutions that address Africa’s most urgent challenges, such as clean energy, resilient infrastructure and climate change, while offering investors the prospects of compelling investment outcomes.”

Leadership and Expertise at AGES 2025

AGES 2025 will bring together leading voices in sustainability and finance, including:

• Abel Sakhau, Chief Sustainability Officer, Sanlam Group, South Africa
• Andrew Johnstone, Chief Executive Officer, Climate Fund Managers, the Netherlands
• Ibrahim Shelleng, Senior Advisor to the President on Climate Finance, Nigeria
• Harsen Nyambe, Director of Sustainable Environment and Blue Economy, African Union, Ethiopia
• James Mnyupe, Presidential Economic Advisor and Hydrogen Commissioner, Government of The Republic of Namibia
• Seewraj Nundlall, Director, Economic Development Board, Mauritius
• Geordin Hill-Lewis, Mayor, City of Cape Town, South Africa
• Shameela Soobramoney, CEO, National Business Initiative (NBI)

These experts will provide invaluable insights and practical guidance to help shape Africa’s green economy and accelerate its transition to a climate-resilient future.

Exploring green hydrogen and carbon market opportunities

The global push for decarbonisation has made green hydrogen a cornerstone of sustainable energy. Africa, with its abundant renewable resources, is well-positioned to lead in this field. AGES 2025 will explore how investments and partnerships can unlock the potential of green hydrogen for both local and global impact.

Additionally, a pre-conference masterclass on navigating carbon market opportunities will provide participants with the tools to optimise carbon revenues and drive impactful climate action.
2025: Focused on impact
The World Meteorological Organisation (WMO) officially named 2024 the warmest year on record. Given the pace of climate change and its continent-wide impact, Roothman hopes 2025 will bring renewed focus on these topics, many of which will be cornerstones of conversation at AGES:

• Renewable energy expansion: A significant increase in solar, wind and hydro projects. Sanlam Investments is supporting this through its own balance sheet as well as through funds such as the Sustainable Infrastructure Fund, funding commercial, industrial and utility scale projects, and the Resilient Investment Fund, backing SMEs like Energy Partners to scale clean energy solutions.
• Green hydrogen leadership: Southern Africa becoming a global leader in green hydrogen, unlocking both export and local energy opportunities, driven in Namibia and South Africa by Sanlam Investments’ pioneering partner Climate Fund Managers.
• Capital harvest: Establishing agricultural cultivations from the ground up to help generate jobs and support more households.
• Inclusive climate finance: Empowering SMEs and underrepresented groups to access and leverage climate-focused investments, enabling all African communities to benefit from green growth.
• Sustainable investment: More investments in projects and businesses that balance growth with environmental responsibility, demonstrated through initiatives like the Sanlam Living Planet Fund, in partnership with WWF.

Blue economy initiatives: Harnessing Africa’s oceans and water resources for sustainable economic growth, with Climate Fund Managers supporting Oceans Finance Company (OFC) to close the world’s largest debt-for-nature swap which will help protect the Galapagos Islands, one of the planet’s most vital ecosystems.

Join AGES 2025

The summit offers a unique platform to connect, collaborate and accelerate the green economy across Africa. By bringing together global capital, cutting-edge solutions, and visionary leadership AGES 2025 will play a key role in advancing Africa’s green transition.

Roothman concludes, “Africa stands at the threshold of a transformative era. Sustainable investing is evolving, and there is a growing need for investors to move beyond traditional ESG considerations to focus on scalable and impactful investments. It’s time to stop talking and thinking about policy and regulation alone – it is time for action.

“From AGES, I want to see commitment to new, green opportunities for our country and the continent. In South Africa, particularly, our country is prime for green investments – for one, economically and secondly, we have the optimal climate, open landscapes, the sea, wind and sun. Currently, asset allocation towards these investments is insufficient. AGES offers a platform for meaningful dialogue and actionable commitments to create lasting impact.”

Disclaimer: Sanlam Investments consists of authorised financial services providers in terms of FAIS and disclaimers can be viewed on our website.

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Elodie Delagneau, Investment Lead at Vuka Group, emphasised the group’s success in linking ambitious entrepreneurs with international financiers, highlighting the 2024 edition which brought a pipeline of $1.2 billion by 32 projects as proof of Africa’s potential and global interest in transformative initiatives.

This year’s Africa’s Green Economy Summit (AGES) will feature 60 diverse projects from over 180 submissions across vital sectors, including water and waste management, the blue economy, agriculture, transport logistics, green building, and renewable energy. These projects, spread across 12 African countries, including South Africa, Rwanda, Botswana, and Nigeria, aim to revolutionise the green economy landscape.

“Our focus this year is sharp, with currently 37 robust SMMES, startups and infrastructure projects confirmed, aimed at national and regional development,” Delagneau stated. The palpable excitement among project leaders and investors underscores Vuka’s commitment to implementing projects with tangible outcomes.

Sectoral Focus on Sustainable Innovation

Vuka Group’s innovative project portfolio addresses key infrastructure and environmental challenges. This year’s focus includes revamping waste management, transport, agriculture, and urban development using cutting-edge practices and technologies.

• Revolutionising Waste Management: Advanced technologies and AI are employed to transform waste into resources, promoting a circular economy. Sectors like mining, energy, and transport benefit from greener practices to boost both economic and environmental outcomes.
• Transforming Transportation Systems: Transportation, crucial for trade and connectivity, is also a primary focus. AGES will highlight initiatives to enhance logistical flows and reduce environmental impacts, including fuel-efficient systems and pollution-monitoring technologies.
• Advancing Regenerative Agriculture: Recognising Africa’s agricultural potential, Vuka promotes regenerative practices to enhance yields while preserving the environment, balancing ecological benefits and commercial interests across land and ocean resources.
• Enhancing Urban Development and Carbon Capture: Vuka prioritises sustainable urban development, focusing on efficient and environmentally responsible urban planning and infrastructure. AGES will explore the role of carbon credits in climate change mitigation during a dedicated pre-conference day.

Platform for Actionable Decision-Making

Delagneau emphasised the critical significance of these projects, setting a new benchmark for sustainable development in Africa. Through innovation and collaboration, Vuka addresses today’s challenges while shaping the future.

AGES is not merely a showcase; it’s a forum for policy dialogue and actionable decision-making. Vuka Group aims to transform AGES into a hub where innovation and opportunity converge, propelling Africa’s development forward.

A crucial component of this success is collaboration with partners like AP3 Advisory, The Lab, Savant, Holocene, and Circular Energy. These partnerships drive the sourcing of projects and identification of bankable opportunities across the industry and continent, working together to reshape Africa’s economic landscape with innovative solutions and strategic investments.

A Holistic Approach to the Green Economy

Beyond the AGES pitch experience, Vuka recently launched the Green Economy Hub, a comprehensive online resource offering information on ongoing initiatives, active investors, and sustainability projects. This year-round platform promotes continuous engagement, allowing projects to connect with investors even if they haven’t had the chance to pitch at AGES.

Delagneau concluded, “The Green Economy Hub enhances the ecosystem for green investments in Africa, ensuring meaningful connections foster growth and innovation.” This approach underscores Vuka’s belief in showcasing bankable projects to inspire global investment shifts towards Africa.

For more information on these pioneering projects and to secure a place at AGES, interested parties can contact Vuka Group or visit the Green Economy Hub online.

Contact Information:
Vuka Group: Elodie Delagneau
Email: elodie.delagneau@wearevuka.com 
Green Economy Hub: https://wearevuka.com/green-economy

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