European Investment Bank partners with DBSA for cleaner S.Africa energy

In a bid to further their commitment to developing climate-related projects in South Africa, the European Investment Bank (EIB) has partnered with the Development Bank of Southern Africa (DBSA) to establish a regional hub in Pretoria. The move is aimed at strengthening their presence in the region and fostering closer relationships with local partners to drive sustainable development initiatives. Ambroise Fayolle, Vice-President of the EIB, highlighted the long-standing history of the EIB in the region, dating back to 1970, and emphasized their focus on climate projects and renewable energy initiatives. With South Africa being a key focus area, the EIB has already invested around 4 billion euros in approximately 50 projects since 1995. This new regional hub will serve as a strategic base for implementing projects that contribute to the country's energy transition and address climate change challenges. Fayolle outlined the EIB's role as a financing arm of the European Union, providing loans and grants to both public and private sector institutions. The collaboration with DBSA and FirstRand Bank underscores the EIB's commitment to supporting renewable energy projects in the region. The EIB's partnership with DBSA has already resulted in a 300 million euro investment, with an additional 200 million euros set to be signed with FirstRand Bank. Despite the challenges in project preparation and financial closure, Fayolle expressed optimism about the EIB's ability to work with local partners to drive sustainable development in Africa. He highlighted the importance of engaging with African financial institutions and leveraging their expertise to identify and execute impactful projects. While acknowledging the time-consuming nature of project development, Fayolle emphasized the EIB's support for countries in implementing their strategic priorities. The Just Energy Transition package, which includes a one billion euro commitment from the EIB, aims to accelerate the shift towards cleaner energy sources in South Africa. Fayolle stressed the urgency of action to address climate change and ensure a sustainable energy future for the region. Looking ahead, the EIB is poised to expand its partnerships and increase its project portfolio in Africa, with a focus on advancing climate-related initiatives and promoting sustainable development.