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(Bloomberg) -- South Africa’s Nedbank Group Ltd. and Norwegian investment firm Norfund AS are acquiring a “substantial minority” stake in a renewable energy company co-founded by a former JPMorgan Chase & Co. banker.

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The firms will invest $31 million in Pele Energy Group, said Chief Financial Officer Matt Wainwright. The investment is the second leg to a larger transaction where the company raised $135 million in a structured loan from Nedbank, Norfund and South Africa’s Industrial Development Corp., said Wainwright, without disclosing the exact size of the stake.

The transaction creates a platform for Pele to raise more funding, Wainwright said. “The company will target additional capital of two to three billion rand over the next two years.”

Pele — co-founded by Gqi Raoleka — and other clean power plant developers are capitalizing on a drive by energy-dependent companies in South Africa to become self-reliant. While the nation now has steady electricity supply, it endured frequent rolling blackouts until last year. Renewable power is also needed for the nation’s transition from a grid that relies on coal to generate more than 80% of its electricity.

South Africa will need at least 30 gigawatts of renewables to support the emerging needs of the grid, including battery energy storage projects, Wainwright said.

Pele and its partners won bids in December for six of eight selected projects in a government program to procure renewable energy.

The company expects the projects to close between September this year, and March 2026, said Wainwright.

“Given the scale of infrastructure and investment needed for renewable energy expansion, having strong financial partners helps accelerate project development while ensuring sustainable growth,” said Wainwright.

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