- SA-H2 is a blended finance private equity fund focused on the green hydrogen value chain and energy transition in Southern Africa
- Commitments were secured from the European Commission under Global Gateway, Invest International, South Africa’s Public Investment Corporation (PIC) on behalf of the Government Employees Pension Fund (GEPF), Sanlam Life and the Industrial Development Corporation of South Africa (IDC)
Cape Town, 6 August 2026: Climate Fund Managers, a climate-focused blended finance investment manager, today announced the first close of SA-H2 Fund (SA-H2), also known as Climate Investor Three (CI3) South Africa, with ZAR 3.0 billion (~USD 182 million¹) commitments.
SA-H2 invests in large-scale energy transition projects across the green hydrogen value chain, including green hydrogen production, downstream derivatives such as green ammonia and green methanol, and the decarbonisation of hard-to-abate industries.
A blended finance facility, SA-H2 combines public and private capital in a single platform. Public capital is deployed strategically to balance risk, enabling institutional capital to participate. It comprises a Development Tranche, providing early-stage risk capital and technical assistance to prepare projects for final investment decision (FID) and blended Equity Tranches to progress from financial close to project construction.
Commitments to SA-H2’s Development Tranche were secured from fund anchors Invest International and the European Commission via its Global Gateway strategy, as well as the Industrial Development Corporation of South Africa (IDC). Commitments to SA-H2’s Equity Tranches were secured from South Africa’s state-owned asset manager, the Public Investment Corporation (PIC) on behalf of the Government Employees Pension Fund (GEPF), South African financial services company Sanlam Life Insurance Limited (Sanlam Life), Invest International and the European Commission. The fund is also supported by the Development Bank of Southern Africa (DBSA).
The first close reflects growing investor confidence in green hydrogen and its derivatives as a solution for decarbonising hard-to-abate sectors, including steel, fertiliser, e-fuels and chemicals.
Andrew Johnstone, CEO of Climate Fund Managers,said: “As the energy transition progresses, industrial decarbonisation requires solutions beyond electrification, and green hydrogen has a critical role to play. With Climate Investor Three, we are developing and scaling projects that enable industrial users to transition to low-carbon alternatives. This first close reflects confidence in Climate Fund Managers’ blended finance model and our track record of developing and scaling infrastructure projects in emerging markets into institutional-grade assets.”
Jeroen Plag, CIO of Invest International, said: “Reaching first close of the SA-H2 Fund is a strong signal of investor confidence in the green hydrogen opportunity in Southern Africa. At Invest International, we strongly believe that unlocking this opportunity requires close collaboration between the public and private sectors. Through this layered capital structure, we can deploy capital more effectively, de-risk early-stage development and help mobilise institutional investment at scale, supporting investment-ready projects and long-term value creation in the energy transition.”
European Commissioner for International Partnerships, Jozef Síkela, said: “This milestone sends a clear signal: Global Gateway is helping create the right conditions for private investors to enter fast-growing markets with high potential. In South Africa, it supports the transformation of the country’s renewable energy potential into lasting benefits for its citizens. Our cooperation with SA-H2 demonstrates this in practice. It supports job creation and industrial development in partner countries, while contributing to the decarbonisation of international industry.”
Lucky Pane, Head of Research and Innovation at the PIC, said: “Our investment in the SA-H2 Fund is in line with the Hydrogen Investment Strategy that we adopted as far back as 2022. The investment in hydrogen gives the PIC the ability to assist its clients in diversifying their energy needs and meeting their net zero targets. This also assists the PIC in decarbonising its portfolio. Furthermore, the PIC supports the United Nations’ Sustainable Development Goals. One of the key goals under SDG 7 is affordable and clean energy, which seeks to increase the proportion of renewable energy in the global energy mix. We believe that hydrogen can play a significant role in the realisation of that energy mix. This investment has been made possible by the Government Employees Pension Fund, who have given us the mandate to make investments that have positive impact and contribute to long term sustainability.”
Mlondolozi Mahlangeni, Chief Actuary & Chief Risk Officer of the Sanlam Group, said: “As a shareholder in Climate Fund Managers, Sanlam has been a committed partner in driving climate finance solutions across emerging markets. Having invested in both Climate Investor One and Climate Investor Two, we are proud to continue this successful collaboration with Sanlam Life as an anchor Tier 2 investor in Climate Investor Three via the SA-H2 Fund. This flagship vehicle will accelerate the development of green hydrogen projects that are essential for the decarbonisation of South Africa’s industrial sector, supporting a just energy transition, sustainable economic growth, and long-term value creation for our stakeholders and the country.”
Rian Coetzee, Divisional Executive, Industry Planning and Project Development at the Industrial Development Corporation, said: “This key milestone – reaching first close at ZAR 3 billion demonstrates the confidence that key partners as well as stakeholders have in the SA-H2 Fund. For us as the IDC, this development will augment our commitment to invest in large-scale energy transition projects spread across the green hydrogen value chain, including green hydrogen production, downstream derivatives such as green ammonia and green methanol, and the decarbonisation of hard-to-abate industries. This also aligns with our strategic focus on building industrial capacity in emerging sectors, advancing localisation, and unlocking South Africa’s potential to compete globally in the clean energy economy.”
Greg Fyfe, Chief Investment Officer at the Development Bank of Southern Africa, said: “DBSA is committed to investing in creating a green hydrogen economy through funding the development of infrastructure in the green hydrogen value chain through various funding instruments. This is a reflection of DBSA’s mission to advance a just energy transition by unlocking infrastructure that enables sustainable and inclusive growth. SA-H2’s blended finance model allows raising of capital in a way that catalyses private sector investment at scale. This is a strategic approach to drive development in a critical new sector while supporting South Africa’s long-term infrastructure goals.”
Mphokolo Makara, CEO of SA-H2 Fund Managers, said: “South Africa’s combination of world-class renewable resources, a strong industrial base and growing demand for low-carbon fuels positions it to play a leading role in the emerging green hydrogen economy. Through SA-H2, we are developing a pipeline of commercially viable projects that will help decarbonise industry, drive long-term economic growth and support a Just Energy Transition.”
To date, SA-H2 has signed development funding agreements with Green Efuels Producers, a first-of-its-kind wastewater-to-green-methanol plant in South Africa’s Gauteng Province, and the Hive Hydrogen Coega Green Ammonia Project, South Africa’s first large-scale green ammonia production plant
This first close of ZAR 3 billion, enables SA-H2 to demonstrate traction and progress in the green hydrogen sector, supported by market activity, to achieve final close at the targeted total fund size of ZAR 12 billion by mid-2028.
The Fund builds on the track record of Climate Fund Managers’ Climate Investor One and Climate Investor Two equity funds, which have together mobilised over USD 2 billion for renewable energy, water, waste and oceans infrastructure in emerging markets. The manager has recently expanded into private credit through the GAIA Climate Loan Fund, which reached first close in 2025 and targets a final close of USD 1.48 billion in 2027.
ENDS
Notes to Editors
¹ USD equivalent calculated using the South African Reserve Bank exchange rate of ZAR 16.4738 per USD as of 3 August 2026.
About Climate Fund Managers:
Climate Fund Managers is a climate-focused blended finance investment manager operating in emerging markets across Africa, Asia and Latin America. It raises and deploys blended climate finance funds, working in partnership to deliver climate solutions at scale and pace. With over USD 2.8 billion in assets under management and more than 50 active projects, it invests across key areas of climate change mitigation and adaptation, including renewable energy; energy transition and green hydrogen; water, waste and maritime; and sustainable cities and the built environment. Its private equity strategies include Climate Investor One, Climate Investor Two, Climate Investor Three and the Shariah-compliant Malaysia Climate Infrastructure Fund (MCIF), which broadens access to climate infrastructure investment for Islamic investors. It also offers a private credit strategy through the GAIA Climate Loan Fund. Its funds are supported by public and private sector organisations, with public capital deployed strategically to balance risk and mobilise private sector capital, enabling investment across the project lifecycle – from development to construction and operation. Established in 2015, Climate Fund Managers is a joint venture between the Dutch development bank FMO and Sanlam InfraWorks of the Sanlam Group in South Africa, with offices in The Hague, Cape Town, Singapore and Bogotá. www.climatefundmanagers.com
About Invest International:
Invest International is a joint venture between the Dutch Government and FMO, with a mandate to provide financing to companies and projects that contribute to the achievement of the SDGs worldwide, while contributing to the earning capacity and resilience of the Dutch economy. Invest International plays a catalysing role in establishing green hydrogen corridors between emerging markets and North-Western Europe, to create sustainable economic development in export countries, contribute to the energy transition and strengthen the Netherlands as a provider of specialised technological and logistical services. www.investinternational.nl
About the European Union:
The European Union (EU) is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights, including the rights of persons belonging to minorities. It acts globally to promote sustainable development of societies, environment and economies, so that everyone can benefit. The EU has contributed to CI3 as part of the Global Gateway, the European strategy for sustainable and trusted infrastructure for people and the planet that will mobilise up to EUR 300 billion of investments for high-quality projects globally, taking into account the needs of partner countries and ensuring lasting benefits for local communities. The total EU contribution to Climate Fund Managers-managed funds is EUR 178 million to date plus a EUR 205 million EFSD+ guarantee, making the EU the largest public investor in Climate Fund Managers’ operations. https://european-union.europa.eu/index_en
About PIC:
The Public Investment Corporation SOC Limited (PIC) is an asset management firm wholly owned by the government of the Republic of South Africa. PIC’s clients are mostly public sector entities, which focus on the provision of social security. The PIC manages a diversified investment portfolio, which comprises multiple asset classes. These include listed equities, real estate, capital market, private equity, and impact investing. The Corporation has a mandate to invest in the rest of the African continent and beyond. Over and above generating financial returns for clients, through its impact-investing programme, the PIC seeks to generate social returns by investing in projects that ensure inclusive growth. The PIC supports the United Nations’ Sustainable Development Goals and considers environmental, social, and governance issues in all its investments.
About the IDC:
The Industrial Development Corporation (IDC) of South Africa Limited was established in 1940 through an Act of Parliament (Industrial Development Corporation Act, 22 of 1940) and is fully owned by the South African Government. The IDC’s priorities are aligned with the national policy direction as set out in the National Development Plan (NDP), industry Master Plans, and other relevant policies. The Corporation’s mandate includes proactively maximising its development impact through driving an ambitious programme of inclusive and sustainable employment-creating industrialisation in South Africa and the region. At the same time, the IDC needs to ensure its long-term sustainability through prudent financial and human capital management, whilst safeguarding the natural environment and positioning itself as a forerunner in development finance in South Africa and the continent. www.idc.co.za
About DBSA:
The Development Bank of Southern Africa is one of the leading development financial institutions on the continent. Our primary purpose is delivering impactful development finance solutions that ignite transformative change in South Africa and on the rest of the African continent. Improving the quality of life of people in Africa is the fundamental focus of our development impact. We aim to bend the arc of history towards shared prosperity through multifaceted investments in sustainable infrastructure and human capacity. Our product solutions span all phases of the infrastructure development value chain from infrastructure planning and project preparation, across a range of financing and non-financing investments to infrastructure implementation and delivery. Our primary areas of focus include Energy, ICT, Transport, Water and Sanitation. Our secondary area of focus includes Education, Housing and Health.
Media Enquiries:
For more information, please contact Sophie Blythe: s [dot] blytheclimatefundmanagers [dot] com (s[dot]blythe[at]climatefundmanagers[dot]com)
Disclaimer
Climate Fund Managers is a manager of alternative investment funds and has obtained an AIFMD license from the Dutch Authority for the Financial Markets (Autoriteit financiële markten) pursuant to section 2:65 of the Dutch Act on Financial Supervision (Wet op het financieel toezicht). Climate Fund Managers is included in the public register maintained by the AFM on its website under license number 15004367. Climate Fund Managers is the appointed fund manager of Climate Investor One, Climate Investor Two and Climate Investor Three. The Construction Equity Funds of Climate Investor One, Climate Investor Two and Climate Investor Three are registered Alternative Investment Funds with the AFM.SA-H2 Fund Managers (Pty) Ltd (“SAFM”) is an authorised financial services provider, licensed as a Category I and II (FSP 53719) in terms of the Financial Advisory and Intermediary Services Act, Act Number 37 of 2002 by the Financial Sector Conduct Authority. The SA-H2 Fund is not at present a “financial product” as defined in terms of the Financial Advisory and Intermediary Services Act 2002. The SA-H2 Fund will not be a collective investment scheme as contemplated under the Collective Investment Schemes Control Act 2002 (“CISCA”) and will therefore, not be approved in terms of CISCA.
