Africa-Press – South-Africa. The African Development Bank (AfdB) said on Thursday it would extend a $2.8-billion facility to SA over the next five years, part of which is intended to fund Eskom’s transition to a low emissions economy.
AfDB president Akinwumi Adesina made the pledge at the SA Investment Conference in Sandton. The facility will fit well with the debt funding plan of the National Treasury, which is to increase borrowings from international finance institutions, which offer loans at concessional rates.
Of the $2.8-billion facility, $400 million was earmarked for Eskom, said Adesina, as it transitions to renewable energy.
The AfDB is part of consortium of international finance institutions which in November at the COP26 conference on climate change pledged to help raise $8.5 billion to establish a just energy transition facility.
‘South Africa is bankable’
Announcing the facility, Adesina said: “This financing will support public and private sector investments in priority areas of agriculture, renewable energy, transport, youth employment, health, vaccines manufacturing, among others. We know South Africa is bankable.”
The bank is already involved in financing 23 projects in SA with a total commitment of about $4.5 billion in financing. Since 1997, the bank has invested nearly $7 billion in the country in energy and infrastructure.
SA has an IMF loan of $4.3 billion; a World Bank loan of $750 million; and two $1-billion loans from the New Development Bank.
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