- €100 million (ZAR 1.98 billion) added by both EIB and DBSA to support renewable energy.
- Projects expected to generate 384 MW of new solar and wind power.
- Initiative aligns with South Africa’s Just Energy Transition, supporting decarbonization and job creation.
The European Investment Bank (EIB) and the Development Bank of Southern Africa (DBSA) have increased their support for private sector renewable energy projects, boosting their combined financing to €600 million (ZAR 11.9 billion). Both banks contributed an additional €100 million (ZAR 1.98 billion) each to this initiative, which was initially launched at COP27 in 2022.
This funding aims to accelerate the development of small and medium-sized renewable energy projects, particularly solar photovoltaic and onshore wind, driven by independent power producers. The initiative, known as the Embedded Generation Investment Programme, is expected to generate 384 MW of new renewable energy capacity, enhancing clean energy production and creating jobs in South Africa.
Boitumelo Mosako, CEO of DBSA, emphasized the significance of this partnership: “Our enduring and strong partnership with the EIB has taken an exciting step forward as we increase our financial support for renewable energy. This collaboration reflects our shared commitment to a greener future. With funded projects now coming online and contributing to the energy grid, we are proud to play a role in driving sustainable growth and energy resilience for South Africa.”
The initiative forms part of the Global Gateway, Europe’s strategy to promote sustainable infrastructure. It is closely aligned with the Just Energy Transition Partnership (JETP), which focuses on supporting South Africa’s decarbonization efforts, particularly in the electricity sector. The EIB’s total commitment under JETP stands at €1 billion (ZAR 19.79 billion).
EIB Vice-President Ambroise Fayolle highlighted the importance of the initiative: “Investing in renewable energy is not only imperative to combat climate change, but it will also lead to more reliable energy supply, which businesses need in order to grow.”
Related Article: EIB’s New EUR 5 Billion Climate Bond Surpasses EUR 100 Billion in Green Funding
Sandra Kramer, EU Ambassador to South Africa, added: “This initiative is a concrete example of the close cooperation between the European Union and South Africa to advance the just energy transition in a way that is sustainable and adds value to South Africa’s economy.”
Since 1995, the EIB and DBSA have worked together on projects aimed at climate action, water, sanitation, and education. Their collaboration now expands with the EIB’s launch of its Regional Hub for Southern Africa and the Indian Ocean, based in Pretoria, reinforcing their commitment to the region’s sustainable development.