Third Way partnership boosts investment into substantial renewable energy project

Third Way partners with Mahlako Energy Fund and Mergence to back Aventro’s shareholding in Redstone Concentrated Solar Power Project

Johannesburg, South Africa – Third Way Investment Partners, in collaboration with Mahlako Energy Fund and Mergence Investment Managers, is proud to announce an investment into Aventro, which serves to boost the industrialists shares into the exciting 100MW Redstone Concentrated Solar Power (CSP) Project. 

The deal marks a victory for Just Transition as well as for women-run business in South Africa with a women-led investment team advancing the innovative funding package to Aventro, which is also women-run. The financing will allow Aventro to increase its shares in the first of its kind 100MW molten salt solar thermal power project being developed in the Northern Cape.

At a time when South Africa’s unrelenting energy crises has been declared a State of Disaster, the project, which is in its development phase, is expected to generate clean energy to electrify about 200 000 South African homes during peak demand periods. It is also projected to have the lowest electrical tariffs thanks to benefits of scale and recent improvements in solar technologies. 

The Redstone Solar Thermal Power Plant will be sub-Saharan Africa’s first CSP molten salt tower, and the largest of its kind in sub-Saharan Africa, second only to Morocco’s 150MW NOOR III CSP. Project completion date is projected to 2023 and it is expected to have an operational life of more than 30 years.

“We are delighted to have the funding from Third Way, Mahlako and Mergence enabling our journey and vision of becoming one of the largest diversified investment holding companies in our chosen sectors” says Tebogo Nkosi of Aventro Investments.

As a local shareholder and technical partner involved in development, procurement, and construction, Aventro is an active participant in the project. The 100% women-driven transaction reflects Third Way, Mahlako and Mergence’s ethos to facilitate socio-economic development and invest in innovative power generation capacity.

The partnership between three like-minded, black-owned fund managers culminates in a strong industry track record to invest in progressive and impactful energy infrastructure projects, coupled with sound environmental, social and governance (ESG)-driven impact investing to deliver risk-adjusted returns for their investors.

Elaborating on the deal, Fulu Makwetla, Managing Director of Third Way Investment “We want to seize the moment in contributing to a stable energy supply and a more sustainable future. It’s precisely these types of projects that we need to be looking at to meet the country’s energy demand. With an energy crisis on our hands, an opportunity is presented to us to provide solutions, and we are proud to have done so with like-minded investors.”

Third Way’s Fund of fund model enables domestic retirement funds of all various sizes seamless access to diversified exposure to this growing asset class. Third Way has a proven investment track record and its R3,5 billion Infrastructure Debt Fund 1 has exposure to more than 30 renewable projects.  The fund has provided investors with stable returns since its inception and has benefitted some of the poorest communities in SA.