South Africa: EIB And FirstRand Bank Boost Renewable Energy Investments With € 400M/ZAR 7.9B Initiative

A € 200 million (ZAR 3.9 billion) loan from the EIB will be matched by FirstRand Bank to invest in renewable energy, in particular solar photovoltaic and wind energy, as well as energy-efficiency projects.

The investments will aim to increase the supply of reliable, affordable, clean and sustainable energy in the country, reducing dependence on fossil fuels.

The investment is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure, and complements the Just Energy Transition Partnership (JETP) to support South Africa’s decarbonisation and to foster new opportunities in the new green economy.

With an average of 2,500 hours of sunshine per year, South Africa is one of the top three locations in the world for solar photovoltaic energy generation. However, so far investment has not matched the country’s potential. Supporting private sector investment to diversify South Africa’s energy mix will make strides to increase energy security, reducing power cuts, as well as fighting climate change.

The initiative with FirstRand Bank was announced during a visit of EIB Vice-President Fayolle to South Africa to launch the EIB’s Regional Hub for Southern Africa and the Indian Ocean.