Germany to Lend South Africa €500 Million for Energy Switch
- South Africa has agreed climate-finance pact with rich nations
- Pact has been delayed by political infighting in South Africa
A coal-fired power station in Mpumalanga, South Africa.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Germany, through its KfW development bank, will on Friday sign an agreement to lend South Africa €500 million ($543 million) at below commercial market rates to help it transition away from the use of coal-fired electricity.
The concessional finance forms part of the $8.8 billion in climate financing offered to South Africa by some of the world’s richest nations in a 2021 agreement known as the Just Energy Transition Partnership. It adds to the €600 million Germany and France extended to South Africa last year. The interest rate on the most recent loan was not disclosed.