The European Investment Bank (EIB) and South Africa’s FirstRand Bank have jointly invested €400 million (R7.9 billion) into various solar and wind energy projects across South Africa.
This partnership aims to increase private-sector energy generation, strengthen energy security, and reduce the country’s ongoing power shortages.
FirstRand is matching EIB’s €200 million ($221.82 million) loan as part of Europe’s Global Gateway initiative, a strategy focused on clean and sustainable infrastructure.
EIB, a key partner in the initiative, is working towards €100 billion in investment by 2027, accounting for a third of the overall plan.
This loan follows the EU’s recent €25 million funding for hydrogen projects in South Africa announced earlier in September.
EU ambassador to South Africa, Sandra Kramer, emphasized that public-private partnerships like this one are essential to mobilizing resources for renewable energy goals.
FirstRand Group treasurer Bhulesh Singh stated that the bank’s commitment to supporting its clients in transitioning to renewable energy aligns with South Africa’s broader climate change and energy supply efforts.
South Africa, aiming for net-zero emissions by 2050, sees renewable energy as a key solution. President Cyril Ramaphosa has encouraged reinvesting carbon tax revenue into renewable energy and energy efficiency programs.
While South Africa’s potential for renewable energy is underutilized, its solar and wind markets are experiencing rapid growth.
Solar power is projected to have a compound annual growth rate (CAGR) of 12% by 2035, with wind energy at 13%.
The country enjoys an average of 2,500 hours of sunshine annually, making it a prime location for solar projects like the 12,000MW JER South Africa Hydrogen solar PV plant.
