- The Development Bank of Southern Africa (DBSA) and Kreditanstalt für Wiederaufbau (KfW) have cemented a significant agreement by signing a EUR 200 million Energy Sector Reform Program Loan Facility.
- In line with South Africa’s Just Energy Transition Investment Plan and revised Nationally Determined Contributions, this initiative will drive the expansion and transformation of the country’s energy supply.
- The program is centred on financing investments in renewable energy, energy storage systems, grid infrastructure, and green hydrogen projects – all integral components in South Africa’s sustainable energy landscape.
Ms. Boitumelo Mosako, CEO of DBSA, highlighted the institution’s commitment to nurturing partnerships that advance the Net Zero agenda and fund clean energy initiatives. “The collaboration with KfW exemplifies a mutual dedication to climate objectives and transformative investments in sustainable energy projects that foster economic growth and job creation. This partnership underscores the critical importance of collaborations in bridging the infrastructure financing gap, facilitating an equitable energy transition, and supporting South Africa’s national development priorities. DBSA’s steadfast focus on sustainable development and its contribution to the UN Sustainable Development Goals emphasise its dedication to driving positive change through strategic alliances.”
KfW’s Babette Stein von Kamienski, highlighted that the loan builds on the energy sector reforms that KfW supported via its policy based loans and that have led to a significant increase in renewable energy projects under development by the private sector, but which are hampered by lack of grid access. Since the credit line’s timing aligns with significant developments that will increase the funding needs for grid investment, it is hoped that the credit line will be used by the DBSA to enable catalytic investment in the grid.
Author: Bryan Groenendaal
1 Comment
Greetings to you all. Ladies and Gentlemen I really appreciate your initiations for the Green Building Africa, as the owners of Sonani Green Energy Solution (Pty) Ltd. We’re working very hard day and night to build 140MW Solar Plant and 80MW Wind Turbine Energy generator in total equals to 220MW in our own land that we purchased to build this industry on our own farm.
Therefore we have all the authorisation from Eskom to connect to the Grid with that capacity, also we need to install the BESS to be able to supply the Steel manufacturing Plant with Renewable Energy.