- A reinforced team will support investments in South Africa and across 13 more countries in Southern Africa and the Indian Ocean.
- The EIB has invested € 8.3 billion (ZAR 164 billion) in the region to date.
- EIB investments will support clean energy, jobs and sustainable economic growth.
- The financing is also part of Global Gateway and is aligned with the Just Energy Transition Partnership (JETP) to support South Africa’s decarbonisation efforts, with a focus on the electricity system.
The European Investment Bank’s Regional Hub for Southern Africa and the Indian Ocean was officially opened by EIB Vice-President Ambroise Fayolle today at new premises in the Menlyn Maine precinct of Pretoria.
“This regional hub will strengthen our presence in the region, bringing us closer to our partners. The need for investment to finance the green transition and drive sustainable growth is great, as are the opportunities,” stated EIB Vice-President Ambroise Fayolle. “Our financing aims to respond to our partners’ most pressing needs in both the public and private sectors, and make a real difference to people’s lives.”
Sandra Kramer, Ambassador of the European Union to South Africa, said, “We are delighted to see the European Investment Bank expanding and consolidating its footprint in South Africa and the rest of the Southern Africa region. It shows the strength of the close partnership between the European Union and the Southern Africa region, and the huge potential ahead to further deepen and expand it”.
“As part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure, and together with European Member States as Team Europe, the EIB has supported some of the most important strategic projects in the region, from Malawi to Madagascar, Angola to Zambia, as well as right here in South Africa,” said Jim Hodges, Head of the EIB’s Regional Hub. “We look forward to building on our work with our partners to achieve an even greater impact.”
The Hub’s team comprises investment and policy specialists, supported by economists, engineers and other experts in the EIB’s headquarters in Luxembourg. It joins the EIB’s three other regional hubs on the continent in Nairobi, Abidjan and Cairo covering East Africa, West and Central Africa and North Africa and the Middle East, respectively.
As the financing arm of the European Union and a key partner in its Global Gateway strategy, the EIB invests in projects which support EU policy goals, such as climate action – renewable energy, energy efficiency and climate-resilient infrastructure – and sustainable economic growth. Since its first operation in the Southern African and Indian Ocean region in 1970, the Bank has supported thousands of small and medium-sized businesses through local banks; improved access to water and sanitation and electricity; upgrades to strategic transport networks; as well as agriculture, healthcare and telecommunications.
During his visit to South Africa, Vice-President Fayolle will announce EIB loans of € 300 million (ZAR 5.94 billion), which will be matched by South African partners, leading to € 600 million (ZAR 11.87 billion) in new investment for renewable energy in the private sector. This comes on top of a € 400 million joint initiative for renewable energy signed with Development Bank of Southern Africa in 2022.
The financing is part of Global Gateway and is aligned with the Just Energy Transition Partnership (JETP) to support South Africa’s decarbonisation efforts, with a focus on the electricity system.
Author: Bryan Groenendaal
