APA-Johannesburg (South Africa) The African Development Bank (AfDB) board of directors has approved a US$300 million loan to South Africa to implement its Energy Governance and Climate Resilience Programme.
AfDB director general for Southern Africa, Leila Mokaddem, said the programme complements the bank’s long-term support South Africa’s energy sector and aligns with the recently approved Country Strategy Paper (CSP) for South Africa, which recognizes the centrality of energy reforms to achieve economic growth and improve business confidence.
“Through a $629,800 (470,000 UA) grant, with co-financing from the Climate Insurance Fund, the bank will provide support to ensure affected communities are not left behind, crowd-in more women as decision-makers and support young entrepreneurs, especially women, to build skills and create jobs for the green economy,” Mokaddem said.
The Energy Governance and Climate Resilience Programme, prepared in collaboration with other development partners such as the World Bank and KfW Development Bank, is expected to help advance South Africa’s energy transition.
It would spur economic growth by promoting structural reforms to restore energy security, promote private sector participation in the electricity market and enhance the operational efficiency of the national power utility Eskom in line with South Africa’s Energy Action Plan and the Just Energy Transition Investment Plan 2023-2027.
The programme is expected to accelerate mitigation and adaptation efforts by promoting renewable energy generation and shifting businesses to low-carbon activities, resulting in lowering the carbon footprint of the South African economy and improving financing for green projects.
Energy has the largest share of AfDB’s project portfolio in South Africa, at 43.4 percent.
JN/APA