Stanlib, with more than R600bn in assets under management, has agreed to invest in renewable energy group Solareff and subsidiary GridCars.
Since its establishment in 2009, GridCars has become one of SA’s biggest providers of electric vehicle (EV) charging service equipment, charging station infrastructure and management systems.
The Standard Bank-owned asset manager’s second infrastructure fund said it has through the transaction committed capital of about R600m to fast-track the buildout of capex-free energy solutions for the commercial and industrial market over the next 18 months.
The commitment signals an uptick in demand for the solar and battery solutions Solareff and GridCars offer, despite SA economy struggling with widespread power outages and cash-strapped consumers.
The deal causes one of SA’s largest asset managers to gain traction in the electric vehicle infrastructure market.
Futuregrowth Asset Management, which holds about R194bn in assets under management, said the car industry “is ready for the changes that are required to make the necessary and speedy transition required to neighbourhood electric vehicles”.
The budding EV industry has called for the government to facilitate a strong ramp-up in the use of EVs, saying legislation has to be finalised to give investors stability and clarity on regulations.
The sector has called for an even playing field, bemoaning the t government not offering tax incentives for EVs and charging a 25% tariff on their imports, compared with 18% for petrol-powered cars.
“The industry has outlined what is required from the government and has also indicated what it is willing to do to help facilitate the process,” said Futuregrowth investment analyst Thesele Mampane. “The industry cannot afford any further delays, particularly if it is to remain competitive globally.”
Government policy
In May 2021, a green paper on electric vehicles was published to establish a clear policy foundation to enable the country to co-ordinate a long-term strategy.
However, it remains unclear when the white paper will be completed and adopted though trade, industry & competition minister Ebrahim Patel said in May that the government’s policy for EVs will be finalised this year and will position SA at the forefront of advanced EV component manufacturing.
“Whether that happens remains to be seen, but one thing is certain: further delays will put yet another damper on the industry’s growth effort,” Mampane said in a note.
The transaction, which remains subject to regulatory approvals, has also led to the establishment of Solareff Green, which will fund and own renewable power generation facilities and sell its generated power to customers via power purchase agreements.
“This investment is the beginning of our next chapter as Solareff continues to play a critical role in SA’s energy transition,” said Solareff CEO and co-founder Jaco Botha.
The country has about 2,000 EVs of various brands. The number of charging points nationally is expected to rise from 350 to 500 by the end of the year, according to Mercedes-Benz SA co-CEO Mark Raine.
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