AfDB, UK FCDO Approve $1 Billion For South Africa’s Just Energy Transition

AfDB, UK FCDO Approve $1 Billion For South Africa’s Just Energy Transition

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In a move signaling a commitment to green growth and sustainable development, the African Development Bank Group, in partnership with the UK Foreign Commonwealth and Development Office (FCDO), has given the nod to a $1 billion guarantee program that aims to bolster the Bank’s lending capacity toward supporting South Africa’s Just Energy Transition (JET) initiatives.

The collaborative endeavor, approved during COP28 amidst discussions on augmenting climate finance, emphasizes a strategic alliance to fortify South Africa’s stride toward a more sustainable energy landscape.

Dr. Kevin Kariuki, Vice President for Power, Energy, Climate, and Green Growth at the African Development Bank, highlighted this as “another innovative operation that reaffirms AfDB’s leadership in crafting financial solutions to increase access to climate finance for Africa’s low carbon development and net zero ambitions.”

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Melinda Bohannon, FCDO Director General of Humanitarian and Development, reiterated the commitment to the Just Energy Transition Partnership with South Africa.

She emphasized the goals of green growth, job creation, energy security improvement, and carbon reduction alignment with South Africa’s National Determined Contribution.

Expressing satisfaction, Mmakgoshi Lekhethe from South Africa’s National Treasury acknowledged the importance of this partnership between governments and financial institutions.

Lekhethe praised the collaboration as crucial to implementing South Africa’s just energy transition in a socially responsible manner.

Max Ndiaye, Director of Syndications, Co-financing, and Client Solutions at the African Development Bank, highlighted this collaboration as a testament to the Bank’s response to global recommendations on capital adequacy, advocating for increased collaboration and shareholder support for the optimization of financial resources.

Leila Mokaddem, African Development Bank Director General for Southern Africa, emphasized the role this landmark guarantee agreement will play in aiding South Africa’s Just Energy Transition.

Mokaddem reaffirmed the Bank’s commitment to supporting South Africa in this transformative journey toward sustainable energy.

This joint effort underscores the significance of international partnerships and financial collaboration in advancing the global agenda for sustainable and equitable energy transitions.

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