EIB and FirstRand Bank make ZAR 7.9 billion available for IPP projects in South Africa

• The solar and wind projects to be supported will increase the reliable supply of clean and low-cost energy.
• The initiative will also contribute to job creation during the construction and operation of the renewable energy projects.
• The investment will increase energy generation by the private sector, while reducing carbon emissions.

Renewable energy projects developed by independent power producers in South Africa received a € 400 million (ZAR 7.9 billion) boost with today’s announcement of a joint initiative between the European Investment Bank (EIB) and FirstRand Bank Ltd. A € 200 million (ZAR 3.9 billion) loan from the EIB will be matched by FirstRand Bank to invest in renewable energy, in particular solar photovoltaic and wind energy, as well as energy-efficiency projects. The investments will aim to increase the supply of reliable, affordable, clean and sustainable energy in the country, reducing dependence on fossil fuels.

The investment is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure, and complements the Just Energy Transition Partnership (JETP) to support South Africa’s decarbonisation and to foster new opportunities in the new green economy.

With an average of 2,500 hours of sunshine per year, South Africa is one of the top three locations in the world for solar photovoltaic energy generation. However, so far investment has not matched the country’s potential. Supporting private sector investment to diversify South Africa’s energy mix will make strides to increase energy security, reducing power cuts, as well as fighting climate change.

The initiative with FirstRand Bank was announced during a visit of EIB Vice-President Fayolle to South Africa to launch the EIB’s Regional Hub for Southern Africa and the Indian Ocean.

Author: Bryan Groenendaal