EIB and FirstRand Bank's €400 Million Investment to Boost South Africa's Renewable Energy Sector

The European Investment Bank (EIB) and FirstRand Bank Ltd. announced a €400 million joint venture in South Africa’s renewable energy sector.

To finance investments in energy efficiency and renewable energy, specifically solar photovoltaic and wind energy, FirstRand Bank will match an EIB loan of 200 million.

The alliance will contribute to the nation's energy transformation by funding energy-efficiency, wind, and solar photovoltaic projects.

The investment seeks to solve persistent issues with energy security, such as frequent power outages, and increase South Africa's supply of clean, sustainable energy while lowering the nation's dependency on fossil fuels.

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It also supports the Just Energy Transition Partnership (JETP), which aims to promote growth in the green economy and South Africa's decarbonization goals.

Sandra Kramer, EU Ambassador to South Africa said, “Fighting climate change, moving towards net zero emissions and spurring green economic growth requires public and private actors to work hand in hand.”

She added, “This initiative from the European Investment Bank and FirstRand Bank shows the power to mobilise resources to achieve those objectives when public-private partnerships are created.”

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With an average of 2,500 hours of sunlight per year, South Africa is among the top three places in the world for producing solar photovoltaic energy.

The energy mix in South Africa will improve energy security, reduce power cuts, and combat climate change.