EIB and Development Bank of Southern Africa increase support for private sector renewable energy to €600M

• EIB and DBSA have committed an additional € 100 million (ZAR 1.98 billion) each to the initiative launched in 2022.
• The initiative supports private sector solar and wind energy projects in South Africa, contributing to reliable clean energy and job creation.
• Projects supported are expected to produce 384 MW of new renewable energy capacity.

The European Investment Bank (EIB) and the Development Bank of Southern Africa (DBSA) have further boosted their support for renewable energy projects in the private sector, aiming to increase clean energy generation while supporting new jobs.

A € 100 million (ZAR 1.98 billion) loan from the EIB, matched by the DBSA, comes in addition to the € 400 million (ZAR 7.9 billion) financing announced at COP27 in 2022. The financing supports the DBSA’s Embedded Generation Investment Programme for the development and upscaling of small and medium-sized renewable energy projects – in particular solar photovoltaic and onshore wind – by independent power producers in South Africa.

The financing initiative is part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure. It is aligned with the Just Energy Transition Partnership (JETP) to support South Africa's decarbonisation efforts, with a focus on the electricity system, and comes on top of the EIB’s € 1 billion (ZAR 19.79 billion) commitment under JETP. 

“Our enduring and strong partnership with the EIB has taken an exciting step forward as we increase our financial support for renewable energy. This collaboration reflects our shared commitment to a greener future. We continue to work closely with our stakeholders, supporting South Africa’s Just Energy Transition (JET) journey. With funded projects now coming online and contributing to the energy grid, we are proud to play a role in driving sustainable growth and energy resilience for South Africa,” said DBSA Chief Executive Officer Boitumelo Mosako.

“We are proud of the progress of this initiative and our partnership with DBSA,” commented EIB Vice-President Ambroise Fayolle. “Investing in renewable energy is not only imperative to combat climate change, but it will also lead to more reliable energy supply, which businesses need in order to grow.”

“This initiative is a concrete example of the close cooperation between the European Union and South Africa to advance the just energy transition in a way that is sustainable and adds value to South Africa’s economy,” said Sandra Kramer, Ambassador of the European Union to South Africa.

The EIB and DBSA have been working together to increase financing for shared priorities since 1995, when the EIB first started working in South Africa. They have cooperated on projects supporting climate action, water, sanitation and education. This week the EIB announced the launch of its Regional Hub for Southern Africa and the Indian Ocean, based in Pretoria, with a strengthened team on the ground.

This article was first published on 11 September by EIB.