With almost perfect conditions for solar technology deployment, a significant energy need and weak infrastructure, South Africa, as highlighted in a detailed EPIA report last year, should be one of the best emerging markets. However, lack of financial support was said to be the key obstacle. That may now be changing with support from the European Investment Bank and Investec to the tune of €100 million for the promotion of clean energy generation and energy efficiency initiatives in South Africa.
“We are delighted to be announcing this facility which has the potential to help the government and industry – transform South Africa’s renewable energy efforts,” remarked Investec’s Fazel Moosa. “Significant global and local experience in project finance for the renewable energy space as well as its current investment pipeline were instrumental in bringing this deal together. We are convinced that our expertise, coupled with the funding the EIB is providing, will support the growth of a green economy in South Africa.”
Investec said that the funding would spread over three years with each project evaluated by Investec’s sector specialists and credit committee, which would be carried out in accordance with additional investment criteria set by the European Investment Bank.