South Africa receives 500 million euro KfW loan for energy transition

South Africa will receive a €500 million loan from the state-owned development bank KfW. This was announced by German Development Minister Reem Alabali Radovan (SPD) during her first visit to the African continent. The loan is intended to help improve the framework conditions for renewable energies in Africa's largest economy.

The loan is intended to help South Africa implement planned reforms that create favorable conditions for private sector investment, including the expansion of grids for solar and wind power plants. "Climate protection is a task that we can only achieve through a joint global effort," said Radovan, who traveled to South Africa for the G20 Development Ministers' Meeting. German companies and developers active in South Africa in the field of solar expansion will also benefit from the energy partnership, the minister emphasized.

Germany leads the way in aid

The loan is part of the "Just Energy Transition Partnership," a trade initiative launched under the German G20 presidency to promote investments in climate protection, the economy, and the energy transition. In addition to Germany, the United Kingdom, France, the Netherlands, Denmark, and the European Union are involved.

South Africa still produces around 80 percent of its electricity using fossil fuels. This makes the country, with a population of 65 million, one of the world's largest CO2 emitters. However, due to its geographical location, South Africa has enormous potential for solar and wind energy.

APA/dpa-AFX