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03 October 2008
Press Clipping :: SA Good News
South Africa's first clean technology investment fund, The Evolution One Fund, plans to invest R1 billion in clean technology initiatives in Southern Africa. The fund was launched this week by Inspired Evolution Investment Management.
According to Inspired Evolution, global investment activity in the clean technology sector is already significant, estimated to be US$ 148.4 billion in 2007 and is forecast to exceed US$ 226 billion by 2016 from private equity and venture capital alone.
However, to date, no fund has focused on the role of clean technology in Africa where environmental and social issues make it a vitally important driver of the economic development of the region.
"We are single-mindedly focusing on building strategic partnerships and on sourcing proprietary and appropriate technologies for application within the SADC region across a variety of investment projects," said Dr Zuko Kubukeli, Executive Director of Inspired Evolution.
The 10 year private equity fund, will focus on cleaner energy and the environment in areas such as air quality and emissions control, water quality and management, waste management and cleaner energy generation and energy efficiency. In all cases, particular attention will be paid to small, medium and microenterprises; broad-based black economic empowerment; and transformation benefits of underlying investment projects.
Evolution One's minimum investment would be R10 million, and the maximum investment R150 million, with a minimum equity participation of 25% and a maximum equity participation of 75%, reports Engineering News.
The Evolution One Fund has already secured R400 million from international investors including the International Finance Corporation, a member of the World Bank Group.
"IFC's investment in Evolution One Fund is in line with the World Bank's overall strategy to support projects investing in technologies to combat climate change," said Haydee Celaya, IFC Director for Private Equity and Investment Funds.
"This investment demonstrates IFC's commitment to be a pioneer and a leader in the clean energy and climate change sectors in southern Africa," she added.
The fund is targeted to grow to R1 billion by mid July 2009 and is currently being marketed to investors in southern and South Africa with plans to make its first investments in 2008.
Although not having made an investment to date, the R1 billion fund would consider investing in projects either in the start-up or early phase, and some later stage projects, or expansion projects.
According to Engineering News, the Evolution One team already has its eye on a number of projects to become involved with, such as thin-film solar manufacturing, retail goods from recycled industrial waste, co-generation, and electric vehicles, among others.
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