- EIB and DBSA have committed an additional € 100 million (ZAR 1.98 billion) each to the initiative launched in 2022.
- The initiative supports private sector solar and wind energy projects in South Africa, contributing to reliable clean energy and job creation.
- Projects supported are expected to produce 384 MW of new renewable energy capacity.
The European Investment Bank (EIB) and the Development Bank of Southern Africa (DBSA) have further boosted their support for renewable energy projects in the private sector, aiming to increase clean energy generation while supporting new jobs.
A € 100 million (ZAR 1.98 billion) loan from the EIB, matched by the DBSA, comes in addition to the € 400 million (ZAR 7.9 billion) financing announced at COP27 in 2022. The financing supports the DBSA’s Embedded Generation Investment Programme for the development and upscaling of small and medium-sized renewable energy projects – in particular solar photovoltaic and onshore wind – by independent power producers in South Africa.
The financing initiative is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure. It is aligned with the Just Energy Transition Partnership (JETP) to support South Africa's decarbonisation efforts, with a focus on the electricity system, and comes on top of the EIB’s € 1 billion (ZAR 19.79 billion) commitment under JETP.
“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. We continue to work closely with our stakeholders, supporting South Africa’s Just Energy Transition (JET) journey. 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,” said DBSA Chief Executive Officer Boitumelo Mosako.
“We are proud of the progress of this initiative and our partnership with DBSA,” commented EIB Vice-President Ambroise Fayolle. “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.”
“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,” said Sandra Kramer, Ambassador of the European Union to South Africa.
The EIB and DBSA have been working together to increase financing for shared priorities since 1995, when the EIB first started working in South Africa. They have cooperated on projects supporting climate action, water, sanitation and education. This week the EIB announced the launch of its Regional Hub for Southern Africa and the Indian Ocean, based in Pretoria, with a strengthened team on the ground.
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. In South Africa, Global Gateway investments focus on the development of sustainable strategic value chains in renewable energy, including critical raw materials, transport and health.
About the Development Bank of Southern Africa (DBSA)
The Development Bank of Southern Africa (DBSA) is one of the leading development finance institutions on the continent. Our primary purpose is delivering impactful development finance solutions that ignite transformative change in South Africa and on the rest of the African continent. Improving the quality of life of people in Africa is the fundamental focus of our development impact. We aim to bend the arc of history towards shared prosperity through multifaceted investments in sustainable infrastructure and human capacity.
Our product solutions span all phases of the infrastructure development value chain from infrastructure planning and project preparation, across a range of financing and non-financing instruments to infrastructure implementation and delivery. Our primary areas of focus include Energy, ICT, Transport, Water and Sanitation. Our secondary area of focus are Education, Housing and Health.