3 June 2009
The African Development Bank has approved a R100-million investment in the Evolution One Fund, the first specialised private equity fund focused on the acceleration and deployment of clean energy and sustainable technologies across southern Africa.
The 10-year private equity fund, managed by Cape Town-based Inspired Evolution Investment Management, will make equity and equity-related investments in sustainable projects and companies with the aim of not only achieving carbon reductions, but also ensuring the sound environmental, social and economic performance of these investments.
“The Evolution One Fund will be the bank’s first investment in a fund with a specific focus on clean energy and technology investments,” the bank said in a statement last week.
“The investment therefore supports an innovative vehicle that will boost economic activity in this emerging field, and contribute to the development of sustainable private sector enterprises.”
The fund will seek to invest predominantly in growth-phase businesses, particularly in eight high-growth sectors, namely clean energy/energy efficiency (up to 50% of its investments), efficient and clean manufacturing processes and technologies, air quality and emissions control.
Other areas include water quality and management, waste management, agribusiness and forestry, natural products, organics and natural health, and environmental real estate.
South Africa will account for 60-75% of the fund’s overall investments, while up to 25-40% will be earmarked for other Southern African Development Community countries.
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