The African Development Bank (AFDB) Group’s Board has agreed on Saturday to offer a $one billion guarantee programme with the Foreign Commonwealth and Development Office (FCDO) during COP28, which will enable the Bank to lend more money to support South Africa’s Just Energy Transition (JET).
The programme, co-designed with South Africa’s government, will fund JET plan projects like power transmission and storage, clean energy, energy saving, municipal electricity repair, green hydrogen, and new electric cars.
It also funds projects that address the “just” aspect, especially in Mpumalanga Province, in the northeast, next to Eswatini and Mozambique.
Melinda Bohannon, Director General of Humanitarian and Development at FCDO, said, “FCDO remains committed to the Just Energy Transition Partnership with South Africa, which supports green growth and jobs, improves energy security, and helps South Africa achieve its carbon reduction ambitions as set out in its National Determined Contribution.”
Bohannon also added that this guarantee will “unlock funds” for projects under South Africa’s new plan for a Just Energy Transition. This is in addition to the generous grant offer from the International Partners Group, which we are using to create a project portfolio for investment.
“We look forward to working closely with the AfDB on the preparation and financing of a pipeline of programmes and projects under our just transition priority areas, including those identified in the JET Implementation Plan,” stated Mmakgoshi Lekhethe, Deputy Director General for Asset and Liability Management in South Africa’s National Treasury.
