The European Investment Bank’s Regional Hub for Southern Africa and the Indian Ocean was recently officially opened by EIB Vice-President Ambroise Fayolle at new premises in the Menlyn Maine precinct of Pretoria.
EIB investments, complemented by investments from local financial institutions, will support clean energy, jobs and sustainable economic growth.
“This regional hub will strengthen our presence in the region, bringing us closer to our partners. The need for investment to finance the green transition and drive sustainable growth is great, as are the opportunities,” Fayolle said. “Our financing aims to respond to our partners’ most pressing needs, in both the public and private sectors, and make a real difference to people’s lives.”
Sandra Kramer, Ambassador for the European Union in South Africa, said, “We are delighted to see the European Investment Bank expanding and consolidating its footprint in South Africa and the southern Africa region. It shows the strength of the close partnership between the European Union and the region, and the huge potential ahead to deepen and expand it.”
“As part of Global Gateway, Europe’s external strategy for clean and sustainable infrastructure development, and together with European Member States as Team Europe, the EIB has supported some of the most important strategic projects in the region, from Malawi to Madagascar, Angola to Zambia, as well as here in South Africa,” said Jim Hodges, Head of the EIB’s Regional Hub. “We look forward to building on our work with our partners to achieve a greater impact.”
The hub’s team comprises investment and policy specialists, supported by economists, engineers and other experts in the EIB’s headquarters in Luxembourg. It joins the EIB’s three other regional hubs on the continent, in Nairobi, Abidjan and Cairo covering East Africa, West and Central Africa, and North Africa and the Middle East, respectively.
As the financing arm of the European Union and a key partner in its Global Gateway strategy, the EIB invests in projects that support EU policy goals, such as climate action – renewable energy, energy efficiency and climate-resilient infrastructure – and sustainable economic growth. Since its first operation in the Southern African and Indian Ocean region in 1970, the Bank has supported thousands of small and medium-sized businesses through local banks, improved access to water and sanitation and electricity, supported upgrades to strategic transport networks, as well as agriculture, healthcare and telecommunications.
During his visit to South Africa, Vice-President Fayolle also announced EIB loans of €300 million (ZAR 5.94 billion), which will be matched by South African partners, providing a total of €600 million (ZAR 11.87 billion) in new investment for renewable energy in the private sector. This is over and above a €400 million joint initiative for renewable energy signed with Development Bank of Southern Africa in 2022.
The financing forms part of Global Gateway and is aligned with the Just Energy Transition Partnership (JETP) to support South Africa's decarbonisation efforts, with a focus on the electricity system.
Further support for private sector renewable energy
In a separate statement the European Investment Bank (EIB) and the Development Bank of Southern Africa (DBSA) confirmed their increased support for private sector renewable energy projects, with a €100 million (ZAR 1.98 billion) loan from the EIB, matched by the DBSA, aiming to increase clean energy generation and support new jobs.
The financing supports the DBSA’s Embedded Generation Investment Programme for the development and upscaling of small and medium-sized renewable energy projects – in particular solar photovoltaic and onshore wind – by independent power producers in South Africa.
A further announcement by the EIB and FirstRand Bank confirmed additional financing via a joint venture committing €400 million (ZAR 7.9 billion) for renewable energy projects developed by independent power producers in South Africa.
A €200 million (ZAR 3.9 billion) loan from the EIB will be matched by FirstRand Bank to invest in renewable energy, in particular solar photovoltaic and wind energy, as well as energy-efficiency projects. The investments will aim to increase the supply of reliable, affordable, clean and sustainable energy in the country, reducing dependence on fossil fuels.
For more information visit: www.eib.org
