In a milestone transaction for the African impact investment sector, Knowledge Pele (Pty) Ltd and Bayakha Investment Holdings (Pty) Ltd. have jointly acquired a significant minority (30%) stake in Edge Growth - one of South Africa’s most respected impact investment and enterprise development firms.
This transaction ushers in a new chapter for Edge Growth, building on its majority black-owned status and reinforcing its commitment to authentic, meaningful transformation.
“This is a strategic partnership grounded in an alignment; on values, on a long-term vision, and on the role, capital must play in driving inclusive growth,” said Ngoku-Sakhile Mazwi, CEO of Bayakha Infrastructure Partners, who joins the Edge Growth Board as part of the transaction. “Together with Edge and Knowledge Pele, we are building a next-generation verifiable impact investment firm that is authentically South African, deeply operational, and institutionally ready to deploy transformative venture capital at scale.”
An African Model for Impact
The transaction brings together three mission-aligned firms - each with distinct capabilities across fund management, development implementation, and SME and venture financing. The result is a unique platform able to design, finance, and deliver development programmes that move the needle on both financial returns and inclusive socio-economic impact.
Edge Growth, through its Ventures and Solutions divisions, has long been a leader in SME development, impact and venture capital investing.
Since its inception in 2007, Edge Growth has played a significant role in driving economic development in South Africa, with R1.87bn in capital committed and R1.76bn in capital deployed into small and medium enterprises (SMEs) across both its Ventures and Solutions divisions. Edge Growth’s various funding vehicles and enterprise development initiatives have not only enabled business growth but also made a tangible social impact by contributing to the creation of more than 24,000 permanent jobs. These investments have supported high-potential businesses, stimulated inclusive economic participation, and helped build a stronger, more resilient SME sector across the country.
This partnership enhances both the achievements to date and the current leadership by adding the investment management expertise of Bayakha Infrastructure Partners: a 100% black-owned, FSCA-licensed fund manager focused on infrastructure private market investments; and the deep development practice of Knowledge Pele and the broader Pele Energy Group.
“For over a decade, we’ve been building inclusive economies in historically excluded communities,” said Fumani Mthembi, Sustainability Director at Pele Energy Group, the parent company of Knowledge Pele. “Our investment in Edge Growth allows us to institutionalise our work, ensuring that development practice and capital allocation are deeply integrated.”
Unlocking sector opportunities
This alignment of capability has immediate sector-level implications. “We see particular opportunity in expanding Edge’s impact in sectors like renewable energy, where the growth of South African enterprises across the full value chain is both a commercial imperative and a development necessity,” added Mthembi.
Edge Growth CEO, Daniel Hatfield, welcomed the partnership as a catalyst for the firm’s next phase of growth: “We are excited to welcome Bayakha and Knowledge Pele as shareholders. This partnership not only strengthens our governance but also enables us to access new SME Development sectors enhancing our ability to grow high-impact South African businesses; create jobs, enable transformation, and unlock long-term economic value for the continent.”
A shared commitment to impact and transformation
More than a capital transaction, this investment is a deliberate move to institutionalise and expand South African excellence in impact investing on the African continent. It ensures that those who live in, understand, and are invested in the continent’s development are shaping how capital is deployed.
“With this partnership, Edge becomes over 60% black-owned; ensuring that transformation is not only a strategic imperative but also a lived reality,” said Mazwi. “This is impact investing done differently; grounded in context, driven by purpose, and built for Africa.”
