EIB, FirstRand Bank to provide EUR 400m for green projects in S Africa

The European Investment Bank (EIB) and FirstRand Bank Ltd have launched a EUR-400-million (USD 440.6m) funding initiative to support renewable energy projects developed by independent power producers in South Africa.

Under the initiative, the EIB and FirstRand Bank will each provide a loan of EUR 200 million for investments in solar and wind projects along with energy efficiency projects. The idea is to increase the supply of clean and sustainable energy in the country, lowering dependence on fossil fuels, the EIB said on Thursday.

The investment is part of the EU's strategy Global Gateway which is aimed at bolstering global sustainable infrastructure development, particularly in regions like Africa, Asia, and Latin America. The financing also complements the Just Energy Transition Partnership (JETP) initiative, whose goal is to support South Africa’s decarbonisation.

The announcement was made just a day after the EIB and the Development Bank of Southern Africa (DBSA) revealed a new funding commitment totalling EUR 200 million to back solar and wind power projects in South Africa. The fresh financing complements a previous EUR-400-million initiative, bringing the total value to EUR 600 million.

(EUR 1 = USD 1.102)

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