EIB and FirstRand Announce €400M Investment for South Africa’s Renewable Energy

South Africa’s renewable energy projects received a major boost as the European Investment Bank (EIB) and FirstRand Bank Ltd. announced a joint €400 million (ZAR 7.9 billion) initiative. The EIB’s €200 million loan will be matched by FirstRand Bank to fund solar photovoltaic, wind, and energy-efficiency projects. This investment aims to enhance the country’s supply of reliable, clean energy and reduce reliance on fossil fuels.

The initiative is part of the Global Gateway, the EU’s external strategy for sustainable infrastructure, and aligns with South Africa’s Just Energy Transition Partnership (JETP). The partnership supports the country’s decarbonization efforts and fosters opportunities within the growing green economy.

South Africa, with an average of 2,500 hours of sunshine annually, has immense potential for solar energy, yet investment has lagged behind its capabilities. This partnership seeks to bridge that gap by increasing energy security, reducing power outages, and combating climate change.

FirstRand Group Treasurer Bhulesh Singh highlighted the bank’s commitment to supporting climate resilience, stating, “Our approach aligns with South Africa’s goals to address energy supply challenges and climate change.”

EIB Vice-President Ambroise Fayolle emphasized the importance of private sector investment, adding, “EIB financing backs companies as they shift to clean energy, crucial for the green transition.”