AfDB commits $2.8 billion towards achieving net-zero emissions

The President, African Development Bank (AfDB), Dr. Akinwumi Adesina, has said that the bank will commit $2.8 billion to South Africa over the next five years to support the drive towards achieving net zero emissions.

He said South Africa’s drive towards achieving energy transition in Africa has earned the bank’s $152 million Red Stone 100 MW, an award of the African Renewable Deal of the Year by the prestigious IJ Global journal.

Adesina stated this during the South Africa Investment Conference held in Johannesburg recently. He said the financing of South Africa will support public and private sector investments in priority areas of renewable energy, agriculture, transport, youth employment, health, vaccines and manufacturing, among others.

He said the net-zero emissions cannot be done with zero financing, which is why the bank is preparing a $400 million support, over the next three years, towards the support for Eskom as it transitions to renewable energy.

Adesina, however, applauded the G7 countries for committing $8.5 billion in support of South Africa’s Just Energy Transition.

He said AfDB is working in partnership with international partners, especially the G7 countries, to establish a Just Energy Transition Facility that will support South Africa to raise at least $27 billion in support of its energy transition.

Adesina said this will transform South Africa into a global leader in energy transition and move the country away from coal to renewable energy. He said it will reduce pollution and the negative impacts of carbon emissions on health and the environment.

“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 said the bank believes in South Africa, which is why its current portfolio investments in the country totals $ 3.2 billion.

He said the bank’s current financing to South Africa’s private financial sector amounts to $1.1 billion, including support to the Development Bank of South Africa and lines of credit and trade finance facilities for leading domestic banks.