The AfDB Group has permitted a $1bn (£795.19m) guarantee from the UK Foreign Commonwealth and Development Office (FCDO) to support South Africa’s JET initiative.
The programme will support projects that are in line with South Africa’s JET investment plan. The plan includes transmission and grid-balancing storage, renewable energy generation and energy efficiency.
It will also support the rehabilitation of municipal electricity delivery, green hydrogen and new electric vehicles.
FCDO humanitarian and development director-general Melinda Bohannon stated: “FCDO remains committed to the Just Energy Transition partnership with South Africa, which supports green growth and jobs, improves energy security, and helps South Africa achieve its carbon reduction ambitions as set out in its national determined contribution.
“This guarantee will unlock funds for projects within the remit of South Africa’s recently released Just Energy Transition implementation plan.
“This comes alongside the recently significantly increased grant offer from the International Partners Group, and we are using some of those grants to help develop an investment project pipeline.”
Additionally, it will provide backing for initiatives that tackle the "just" aspect, particularly in the north-eastern province of Mpumalanga, which shares borders with Mozambique and Swaziland.
South Africa National Treasury Asset and Liability Management deputy-director general Mmakgoshi Lekhethe stated: “We are pleased with the approval by the AfDB board of the guarantee framework that will increase South Africa’s access to funding from the bank by $1bn.
“This marks an important partnership between our government, the UK and AfDB to enhance our ability to implement South Africa’s Just Energy Transition in a way that is just and socially responsible.
“We look forward to working closely with the AfDB on the preparation and financing of a pipeline of programmes and projects under our just transition priority areas, including those identified in the JET implementation plan.”
