African Development Bank approves more than US$470 million loan to support South Africa’s green growth programme

The African Development Bank (AfDB) Group has approved a loan of US$474.6 million for South Africa’s Infrastructure Governance and Green Growth Programme (IGGGP). The programme aims to support the country’s plans for a low-carbon economy. This is reported by IOL.

This is the second phase of AfDB’s support for South Africa’s Just Energy Transition, following a US$300 million programme approved in 2023 that contributed to financial stability and an increase in renewable energy capacity.

The IGGGP focuses on three main areas: improving energy security through reforms in the power sector, supporting a low-carbon transition, and making the transport system more efficient. The programme also includes support for green industries, job creation and skills development, with initiatives in electric vehicles and green hydrogen.

South African Finance Minister Enoch Godongwana welcomed the AfDB’s support, saying: “With your partnership, our government has committed itself to stay the course and implement these critical reforms in the energy and transport sectors, while endeavouring to achieve our international commitments on climate change.”

The loan package includes grant elements for energy efficiency and rail sector improvements. The planned reforms are expected to help strengthen South Africa’s logistics systems and regional connections.

“This approval represents more than financing – it’s a blueprint for Africa’s energy future,” said Kennedy Mbekeani, AfDB’s Director General for Southern Africa.