EIB and FirstRand Bank boost renewable energy investments in South Africa with € 400 million/ZAR 7.9 billion initiative – The Kampala Report

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 bank’s approach to helping its clients shift to renewable energy and enhance climate resilience supports South Africa’s efforts to address the country’s climate change and energy supply challenges,” said Bhulesh Singh, FirstRand Group Treasurer.

“As the EU’s climate bank, the EIB is committed to working with its partners to support a green transition,” said EIB Vice-President Ambroise Fayolle. “Companies have recognised the business opportunities in moving to clean energy technologies; EIB financing is there to back those investment needs.”

“Fighting climate change, moving towards net zero emissions and spurring green economic growth requires public and private actors to work hand in hand. This initiative from the European Investment Bank and FirstRand Bank shows the power to mobilise resources to achieve those objectives when public-private partnerships are created,” said Sandra Kramer, EU Ambassador to South Africa.

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.