- A reinforced team will support investments in South Africa and across 13 more countries in Southern Africa and the Indian Ocean.
- The EIB has invested € 8.3 billion (ZAR 164 billion) in the region to date.
- EIB investments will support clean energy, jobs and sustainable economic growth.
The European Investment Bank’s Regional Hub for Southern Africa and the Indian Ocean was officially opened by EIB Vice-President Ambroise Fayolle today at new premises in the Menlyn Maine precinct of Pretoria.
“This regional hub will strengthen our presence in the region, bringing us closer to our partners. The need for investment to finance the green transition and drive sustainable growth is great, as are the opportunities,” stated EIB Vice-President Ambroise Fayolle. “Our financing aims to respond to our partners’ most pressing needs in both the public and private sectors, and make a real difference to people’s lives.”
Sandra Kramer, Ambassador of the European Union to South Africa, said, “We are delighted to see the European Investment Bank expanding and consolidating its footprint in South Africa and the rest of the Southern Africa region. It shows the strength of the close partnership between the European Union and the Southern Africa region, and the huge potential ahead to further deepen and expand it”.
“As part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure, and together with European Member States as Team Europe, the EIB has supported some of the most important strategic projects in the region, from Malawi to Madagascar, Angola to Zambia, as well as right here in South Africa,” said Jim Hodges, Head of the EIB’s Regional Hub. “We look forward to building on our work with our partners to achieve an even greater impact.”
The Hub’s team comprises investment and policy specialists, supported by economists, engineers and other experts in the EIB’s headquarters in Luxembourg. It joins the EIB’s three other regional hubs on the continent in Nairobi, Abidjan and Cairo covering East Africa, West and Central Africa and North Africa and the Middle East, respectively.
As the financing arm of the European Union and a key partner in its Global Gateway strategy, the EIB invests in projects which support EU policy goals, such as climate action – renewable energy, energy efficiency and climate-resilient infrastructure – and sustainable economic growth. Since its first operation in the Southern African and Indian Ocean region in 1970, the Bank has supported thousands of small and medium-sized businesses through local banks; improved access to water and sanitation and electricity; upgrades to strategic transport networks; as well as agriculture, healthcare and telecommunications.
During his visit to South Africa, Vice-President Fayolle will announce EIB loans of € 300 million (ZAR 5.94 billion), which will be matched by South African partners, leading to € 600 million (ZAR 11.87 billion) in new investment for renewable energy in the private sector. This comes on top of a € 400 million joint initiative for renewable energy signed with Development Bank of Southern Africa in 2022.
The financing is part of Global Gateway and is aligned with the Just Energy Transition Partnership (JETP) to support South Africa's decarbonisation efforts, with a focus on the electricity system.
Background information
The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.
EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world. The EIB opened its first office in South Africa in 2005.
About Global Gateway
Global Gateway is the European strategy to boost smart, clean and secure links in digital, energy and transport sectors, and to strengthen health, education and research systems across the world. Through a 'Team Europe approach', Global Gateway brings together the EU, its Member States and their financial and development institutions to mobilise the private sector to leverage investments for a transformational impact. It aims to mobilise up to €300 billion (ZAR 5.94 trillion) in investments. Global Gateway is fully aligned with the UN’s Agenda 2030 and its Sustainable Development Goals, as well as the Paris Agreement. The EIB is a key partner in Global Gateway. It aims to support € 100 billion (ZAR 1.98 trillion) of investment by the end of 2027, around one third of the overall target of this EU initiative.