Investor Proposition

Renergen was established to capitalise on the unprecedented growth in alternative and renewable energy by exploring, developing and operating a diversified portfolio of alternative energy assets in Africa and emerging markets to deliver attractive, sustainable economic returns to shareholders.

We progressed the first, and currently only, onshore petroleum production right in South Africa to production with our renewable Tetra4 project. Renergen is uniquely placed to realise the exciting growth potential of this world-class deposit (see Projects) for the benefit of all stakeholders.

Read the latest news from our business here, as well as keep up to date with our financial statements and presentations.

Investment Criteria

Our focus is on the alternative and renewable energy sectors in South Africa and sub-Saharan Africa but we may consider acquisitions in developing markets outside of this geographical region or other energy investments such as in outdated energy infrastructure that will improve the overall carbon footprint of the operation.

We will consider investing if the market value of the target company is less than its intrinsic value or when the value can be improved significantly as a result of Renergen’s management expertise, influence, and business relationships.

Our aim is to target projects that are either recently revenue generating or close to being so, to support an optimal return for shareholders. The selection process follows a simple yet effective process of elimination, as illustrated below:

If the answer to any of the questions stated above is “no”, the target will not be eligible for consideration. If eligible, we will engage with the potential target and assess its business with regards to the following criteria:

  • Macroeconomic factors affecting the business
  • Business case and growth potential
  • Financial and legal due diligence

Demand Drivers

Economic growth on the African continent has continued to accelerate over the past ten years, with growth rates significantly above the global average. There is a considerable undersupply of the alternative and renewable energy required to realise Africa’s growth potential. We believe that sub-Saharan Africa presents important and valuable opportunities to develop alternative and renewable energy resources to support the strategic infrastructure and basic services necessary to facilitate the habitation, extraction, and economic growth patterns of the region.

The growth and development of the middle class in sub-Saharan Africa and rapid urbanisation are increasing energy consumption. Further as economic growth continues, so does the load on the telecommunication networks and the requisite energy resources to keep communications infrastructure operational.

Resource extraction of minerals in sub-Saharan Africa is expected to grow at an average annual rate of 8% over the next decade. Given the energy-intensive nature of the extraction process, a need for significant alternative and renewable energy exists. In addition as countries in the region continue to develop, a substantial need for alternative and renewable energy is required to support the growing manufacturing output.

Aging infrastructure in sub-Saharan Africa also provides unique opportunities to acquire spent assets, such as hydro-power stations that have reached the end of their intended lifespan for example, and rejuvenate them with modern technology to improve operating efficiency.