- EIB and DBSA have committed an additional € 100 million (ZAR 1.98 billion) each to the initiative launched in 2022.
- The initiative supports private sector solar and wind energy projects in South Africa, contributing to reliable clean energy and job creation.
- Projects supported are expected to produce 384 MW of new renewable energy capacity.
The European Investment Bank (EIB) and the Development Bank of Southern Africa (DBSA) have further boosted their support for renewable energy projects in the private sector, aiming to increase clean energy generation while supporting new jobs.
A € 100 million (ZAR 1.98 billion) loan from the EIB, matched by the DBSA, comes in addition to the € 400 million (ZAR 7.9 billion) financing announced at COP27 in 2022. The financing supports the DBSA’s Embedded Generation Investment Programme for the development and upscaling of small and medium-sized renewable energy projects – in particular solar photovoltaic and onshore wind – by independent power producers in South Africa.
The financing initiative is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure. It is aligned with the Just Energy Transition Partnership (JETP) to support South Africa’s decarbonisation efforts, with a focus on the electricity system, and comes on top of the EIB’s € 1 billion (ZAR 19.79 billion) commitment under JETP.
The EIB and DBSA have been working together to increase financing for shared priorities since 1995, when the EIB first started working in South Africa. They have cooperated on projects supporting climate action, water, sanitation and education. This week the EIB announced the launch of its Regional Hub for Southern Africa and the Indian Ocean, based in Pretoria, with a strengthened team on the ground.
Author: Bryan Groenendaal
