Local investment firm Maia Capital has collaborated with Nedbank Corporate and Investment Banking (CIB), to invest in Green Climate Ventures (GCV), in a bid to advance SA’s energy mix by promoting clean and reliable sources of energy.
According to a statement, the R125 million mezzanine debt facility is invested through the Maia Debt Impact Fund – Maia’s maiden impact fund, which launched in June 2020 and reached first close in December 2021.
The investment by Maia Capital forms part of a R1.5 billion preference share facility arranged by Nedbank CIB, and advanced to GCV.
Maia Capital is a mezzanine debt fund aimed at investing in social infrastructure (education, healthcare and housing), clean technology, financial inclusion and gender inclusion.
GCV is a wholly-owned subsidiary of New GX, an investment holding company founded by South African entrepreneur Khudusela Pitje. The firm provides expertise and capital to the social entrepreneurship ecosystem in the areas of rural electrification, renewable energy, agribusiness, IT and cooling.
The debt funding will be used to promote digital access to South African communities, and accelerate funding to businesses specialising in promoting clean and reliable sources of energy, says the company.
"The investment in GCV is enabling our business to reposition itself, and to participate in bridging the infrastructure gap in sectors that are critical to unlocking economic growth for South Africa," notes Pitje.
Maia Capital says the partnership with Nedbank CIB will go a long way in supporting local businesses to further develop and scale their operations, as the parties share a common interest in directing capital towards investments that generate a high positive impact.
Dinao Lerutla, managing partner at Maia Capital, adds: “We are very pleased to have invested in GCV, as it aligns with our impact philosophy and allows Maia Capital to establish a long-term relationship with parties that share the same investment ethos.”
Maia Capital says it has identified four gaps in SA’s macro-economy, including public debt, public spend on infrastructure, unemployment and inequality, and economic recovery.