Johannesburg, South Africa — South African metalworkers’ pension funds will invest 1 billion rand ($109 million) in renewable- energy projects as a power-capacity shortage in the continent’s largest economy threatens outages as early as this winter.
The plan follows changes to pension-fund rules that allow savings to be directed toward projects promoting environmental and social benefits, Omar Gire, principal officer of the administrators, said today in the e-mailed statement.
South Africa is seeking to boost generation by awarding contracts to build wind, solar and biomass plants after energy shortages halted mines and factories in 2008. State-run utility Eskom Holdings SOC Ltd. is struggling to meet growing demand.
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