South Africa’s biggest asset manager making R660 million bet

South Africa’s Public Investment Corporation, the continent’s biggest money manager, and two development institutions have pledged $37 million (R659 million) to a fund for financing green hydrogen projects.

The Development Bank of Southern Africa and the Industrial Development Corporation of South Africa will help finance the SA-H2 fund, which blends public and private capital.

It is managed by a partnership between Hague-based Climate Fund Managers and Invest International, a Dutch development finance institution. 

Over various tranches, the IDC and DBSA will each invest $10 million, with PIC putting in $17 million.  

“As a long-term investor, the PIC is committed to supporting infrastructure that generates attractive commercial returns while delivering inclusive, broad-based economic impact,” PIC Chief Investment Officer Kabelo Rikhotso said in the statement.

Various green hydrogen projects in the region, many of which would be initially geared for exports, are looking to gain momentum. The European Union announced grants last year to get the industry going.

Sasol has a project at the port of Boegoebaai on South Africa’s northwest coast that would ship the fuel and provide domestic supply for its own operations, though the fuel and chemical maker has made some strategy changes. 

Climate Fund Managers also committed as much as $20 million through the SA-H2 fund to complete the development stage of a project by Hive Hydrogen.

The company is planning the first large-scale green ammonia production facility in the Eastern Cape province. 

Financial close is expected by the end of 2026, with commercial operations to begin in 2029.