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AfDB commits $2.8 billion to support SA’s development towards achieving net-zero emissions

AKINWUMI Adesina, President of the African Development Bank (AfDB), has announced that the bank will invest $2.8 billion in South Africa over the next five years to help the country achieve net zero emissions.

He said that South Africa’s commitment to accomplishing energy transition in Africa has earned the bank’s $152 million Red Stone 100 MW project an award from the distinguished IJ Global journal for African Renewable Deal of the Year.

This was expressed by Adesina at the recent South Africa Investment Conference in Johannesburg. He stated that South Africa’s money will assist public and private sector investments in renewable energy, agriculture, transportation, youth employment, health, vaccines, and manufacturing, among other areas.

He explained that achieving net-zero emissions requires zero funding, which is why the bank is drafting a $400 million support package for Eskom as it converts to renewable energy over the next three years.

Adesina, on the other hand, commended the G7 for offering $8.5 billion to promote South Africa’s Just Energy Transition.

He stated that the AfDB is collaborating with international partners, particularly the G7 countries, to establish a Just Energy Transition Facility to help South Africa raise at least $27 billion for its energy transition.

According to Adesina, this will make South Africa a global leader in energy transition, moving the country away from coal and toward renewables. He claims that it will reduce pollution and the negative health and environmental effects of carbon emissions.

“It is a great opportunity to recalibrate the economy to generate thousands of green jobs and power new green industries for a more competitive economy for South Africa. The African Development Bank will be by your side as South Africa powers its economy forward to a more glorious future,” he noted.

Adesina stated that the bank believes in South Africa, which is why the country’s current portfolio investments exceed $ 3.2 billion.

He added the bank’s current lending to South Africa’s private financial sector is $1.1 billion, which includes support for the Development Bank of South Africa, as well as lines of credit and trade finance facilities for major local banks.

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