Mahlako Financial Services announces R1.5 billion energy fund
In an effort to transform the energy sector, Mahlako Financial Services has announced that it has established a R1.5 billion fund to invest in energy projects across the country that have growth potential.
Speaking to Business Report Online, Mahlako Financial Services co-founder Makole Mupita said the fund hoped to unlock access to capital, especially for black businesses.
“We feel that the energy industry played a critical role in the South African economy and those in the majority must also play a role,” she said.
Mahlako Financial Services is a subsidiary of the Mahlako a Phahla. Mahlako is co-owned by sisters, Makole Mupita and Meta Mhlarhi.
The company described itself as an investor in developmental infrastructure assets that was geared towards transforming SA’s economy while also providing innovative and insightful solutions to their clients.
Mupita claimed that the fund was the first of its kind in the energy business. “This is a 100% black female-owned energy fund with a mandate that expands beyond renewable energy, to include gas and energy services sectors, as we endeavour to tackle, disrupt and transform SA’s energy sector,” she said.
She added that the company had three investors that were interested in energy projects and they provided capital for the fund.
While the fund is aimed at energy projects from different companies, Mupita said it would be great if the projects were led by women.
She said the fund would invest a maximum of 15% of the fund size in each company chosen.
“This is not company-specific, but rather driven by value. We will go as far as our R1.5 billion will take us. We do not have a minimum size. We will invest in smaller projects where the project is strategic in nature,” she said.
Co-founder Mhlarhi said they backed their portfolio companies holistically beyond providing working capital.
“Aside from our expertise, we will leverage our network to offer access to a strategic network of resources and future funding partners, to bring the best support for the most promising business contributing to the energy transition,” she said.
Companies that would like to apply for the funding can send their profiles and investment pitch to [email protected]
BUSINESS REPORT ONLINE