AfDB commits $2.8 billion to South Africa's renewable energy development

Africa Development Bank (AfDB), a multilateral agency, continues to promote South Africa's renewable energy transformation. The Bank is assisting in the development of various solar and wind energy projects in the country, both public and commercial. This includes the 100 MW Sere Wind Power Plant in the Western Cape, the 100 MW Xina Solar Power Concentrated Power Plant in the Northern Cape, and the 100 MW Redstone Solar Project in the Northern Cape (Northern Cape).

The financial support, most notably the $8.5 billion in grants from G7 countries, will ensure South Africa can finance its energy transition sufficiently without incurring debt. Also, the collaboration between the Bank and some international partners to raise at least $27 billion for South Africa's energy transition could boost the economy, create jobs, and fuel new greenfield sectors.

The South African government emphasizes its commitment to achieving a 15% reduction in coal power production and an 18% increase in renewable energy by 2030. Hence, the government will put efforts into developing a solid alternative economic program for communities in coal mining areas.