This is a significant step towards accelerating the country’s transition to a sustainable, low-carbon economy.

The financing marks the second phase of the AfDB’s support for SA’s Just Energy Transition, following the $300 million Energy Governance and Climate Resilience Programme approved in 2023. The bank says the newly approved loan is not only a financial intervention, but also a model for Africa’s broader energy transition.

SAs Finance Minister, Enoch Godongwana, welcomed the funding, saying it would enhance energy security, improve transport efficiency, and support a just and inclusive shift to low-carbon development.

“This initiative will enhance energy security, support a low-carbon, just transition and improve transport efficiency,” Godongwana said. “The AfDB support has been valuable and strategic in our efforts to address energy challenges while promoting inclusive growth.”

The AfDB noted that SA’s programme aligns with broader continental goals of climate resilience and green economic transformation. The bank said the project would strengthen infrastructure governance, stimulate climate-friendly investment, and contribute to regional climate objectives.

The bank also cited recent estimates from the International Monetary Fund suggesting that SA’s Just Energy Transition could boost GDP growth by 0.2 to 0.4 percentage points annually between 2025 and 2030.

--Khayelihle Khumalo/ChannelAfrica--