Airnergize Capital, the clean technology investment platform of New GX Capital, has raised R3.89 billion ($239.4 million) for its first fund, securing backing from some of South Africa’s largest financial institutions.

The Development Bank of Southern Africa committed R240 million ($14.8 million) as the fund’s lead development finance institution, joining RMB Ventures, Standard Bank, Nedbank and New GX Capital as investors.

Airnergize Capital invests in energy, water and gas infrastructure businesses across Southern Africa and other African markets. The fund is focused on established companies developing technologies and services for critical infrastructure.

DBSA backs infrastructure investment

The DBSA said its investment reflects its broader mandate to help mobilize capital for infrastructure projects that can support economic growth and improve access to essential services.

“DBSA’s mandate is to mobilize capital toward infrastructure that supports inclusive growth, and a platform like Airnergize does that at scale rather than one transaction at a time,” said Mahlatsi Molokomme, a principal investment officer at the development finance institution.

“Backing a fund alongside commercial investors allows us to crowd in private capital rather than compete with it,” Molokomme said. “That is exactly the kind of blended approach South Africa needs if it is going to close its infrastructure investment gap.”

For New GX Capital, the fund’s closing brings together institutional and commercial investors with different areas of expertise.

Fund targets power, water and waste solutions

“Getting to R3.89 billion ($239.4 million), with this caliber of investor around the table, tells you the market believes in what we are building,” said Khudusela Pitje, group chief executive of New GX Capital.

“Each investor, including the DBSA, has added something different: balance sheet strength, sector expertise and a development mandate,” Pitje said.

Airnergize Capital is based in Johannesburg and operates as an investment arm of New GX Capital. The firm focuses on clean technology and infrastructure, including renewable energy, water purification, waste management, clean-air systems and gas technologies.

The fund comes as African economies face growing demand for investment in reliable power, water and other basic infrastructure. Airnergize intends to use the capital to invest in companies that can expand solutions in these sectors across Southern Africa and the wider African market.

The DBSA, a government-owned development finance institution established in 1983, provides financing and project support for infrastructure projects across Africa, with a focus on economic development, regional integration and reducing poverty and inequality.