The Public Investment Corporation (PIC) has invested ZAR22bn ($1.8bn) to acquire stakes in two solar power projects in South Africa.

PIC, which is the biggest pension fund in the African country, has acquired 20% stakes in the Ilanga and Xina power developments, reports Reuters.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Both the projects, located in the Northern Cape province, are expected to generate 200MW of power, which will be connected to the national grid.

PIC will also allow a loan of ZAR600m ($48.4m) for the Ilanga project, it said.

"PIC will allow a loan of ZAR600m ($48.4m) for the Ilanga project."

PIC CEO Daniel Matjila was quoted by Bloomberg as saying: "Electricity remains an important contributor to South Africa’s economic development and, for this reason, we believe that investment in the renewable energy sector is critical."

See Also:

South Africa derives nearly 95% of its power requirements through state-owned utility Eskom Holdings.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The utility is presently facing obstructions in power generation due to its aging facilities, which in turn is affecting the industries due to frequent blackouts.

Though Eskom is rushing to turn new plants operational in order to meet South Africa’s growing power demands, the coal fired facilities are expected to take a longer time for construction.

At present, South Africa is looking for alternative means to meet its power requirements, which explains its investments into the renewable sector.