Investment in Energy Resources 2017-06-20T17:58:56+00:00

Investment in Long-Term Energy Resources

Our investments in energy resources are designed for long term yields and, in order to enjoy the benefits, it is important for us and our investors to be patient.

Investments in renewable energy such as wind and solar can last for 20 years, coal 20 to 30 years and gas from 25 to 30 years. These are therefore long-term investments, they are consistent and more importantly, sustainable.

Your investment encompasses many projects and your returns are based on the entire diversified portfolio.  In line with our nurturing philosophy, we focus on building value in the foundation phase and therefore, will only declare dividends from 2020, thus enabling us to plough back capital into investments by acquiring more projects and thereby boosting your returns.

We understand the challenges facing long-term investors and seek suitable assets with attractive cashflow profiles to match long-term liabilities – mainly due to inflation, advances in medicine and healthier lifestyles.

Investments within Independent Power Producers

Phase 1: Secondary investment opportunities

Initially, our main focus is on secondary investment opportunities which are investments in operating assets that have already been awarded power purchase agreements and are generating cashflows. These immediately give stable and predictable cashflows without having to wait for returns at some point in the future.

Phase 2: Primary investment opportunities

Primary opportunities entail partnering with project developers at the bidding stage and financial close. We invest from the infancy of the asset; however, we do not carry any development risk until that specific project has received its power purchase agreement. The risk during construction is managed through fixed cost fixed term construction agreements. The upside is that, because we have entered these ventures at an earlier stage in their project lifecycle, the yield is higher without any additional inherent risk.

We believe that primary and secondary developments are complementary and that the product mix of the two is essential during times of political and economic uncertainty.  Once these primary opportunities are established, our need to compete in the secondary market is reduced as competition for these established assets will increase and become less profitable. There are, however, more than enough secondary opportunities available in South Africa until such time as the government finalises its energy policies.

Investment Evaluation

We invest in attractive energy opportunities in a sustainable manner.

Initially our focus is in South Africa where we are establishing and building a reputation for reliability, credibility, process and trust, and developing an environment for job creation and poverty relief.

We will only grow into Sub-Saharan Africa and the rest of the continent, once a foundation has been established and growth is sustainable.  Projects range from operating assets to development opportunities that are “ready for bid” (primary), our only role being a financial investor. We are, however, protecting our investment by evaluating and monitoring:

the return on that investment
counterparty risks
the quality of the management team
environmental considerations
the security of cashflows backed by guarantees

Energy Focus

A successful renewable energy programme has been rolled out by the South African Department of Energy and has been hailed as one of the best run programmes globally to date. Hulisani launched with renewable energy but believes in a good energy-mix based on the country’s’ and continent’s needs, and that we need to harness our resources, be they sun, coal, natural gas or wind. We are confident that there will be significant continued investment in the sector, including that of energy infrastructure and manufacturing.  This will ensure the sustainability and growth of our investments.

Africa is crying out for energy. We see the need and potential, and through our consistent approach of delivering to our investors we plan on extending our activities off a solid foundation.

Sustainability, consistency and growth are the heart of our business.

“I’ve been studying how quickly we can get energy out to the poor countries, a lot of which are in Africa, and how little progress we’ve made there. There’s no more electricity today in Sub-Saharan Africa per person than there was 20 years ago.”
(Bill Gates)