Page 13 - AfrElec Week 39 2021

AfrElec GREEN FINANCE AfrElec

Climate envoys head to South Africa

to negotiate green finance

SOUTH AFRICA CLIMATE envoys from the US, UK, France energy projects. Its debt burden of ZAR402bn
and Germany arrive in South Africa this week ($26.9bn) is a hurdle to borrowing more money
to negotiate the country’s transition to a green to pay for the energy transition.
economy. The officials are expected to land on Last week Albi Modise, a spokesman for
Monday, 27 September, for a series of meetings South Africa’s environment department, con-
with South African energy policymakers. firmed in a statement that John Murton, the
Around 90% of South Africa’s electricity UK’s envoy to COP26, would visit the country
is generated from coal and the officials’ main to determine how South Africa could be helped
agenda will be to kick-start an agreement on in its green transition, but did not commit to a
how to finance the country’s switch to a low-car- timeframe.
bon economy, ahead of the UN Climate Change But a report over the weekend confirmed the
Conference (COP26) in Glasgow in November. envoys would be visiting this week, to discuss
South Africa is the 12th-largest emitter in the climate finance.
world, with an abundance of coal reserves and Eskom’s CEO, Andre de Ruyter, is in favour of
15 power plants operated by state utility Eskom. turning Eskom into a greener utility and retiring
While the exact itinerary of the officials is the power plants, but with the necessary financial
being kept under wraps, it has emerged Eskom assistance from the developing world.
will take centre stage in the negotiations. Also likely to be in the meeting is South Afri-
Eskom generates almost all of the nation’s ca’s minerals minister, Gwede Mantashe, who
power, but is staggering under crippling debt, has labelled the shift from coal to renewables
which it says is hampering its move to green “economic suicide.”™

EBRD, EU and GCF support green

investments in Morocco

SOUTH AFRICA THE European Bank for Reconstruction and deployment of the programme. The European
Development (EBRD) – supported by the Green Union considers this package to be a concrete
Climate Fund (GCF) and the European Union – way to help companies find and finance the
is providing a financial package of up to €25mn solutions best suited to their transition to the
to Credit Immobilier et Hotelier (CIH Bank) to green economy in Morocco.
support Morocco’s green transition, the EBRD The signing ceremony took place in the pres-
said in a press release on September 27. ence of Antoine Sallé de Chou, head of Morocco
The financing, of which a total of €18.75mn for the EBRD, and Lotfi Sekkat, chairman and
will be provided by the EBRD and €6.25mn by CEO of CIH.
the GCF, will be extended as sub-loans by CIH Operating in Morocco since 1920, CIH Bank
Bank to local citizens, small and medium-sized is a major player in the development of the
enterprises (SMEs) and corporates for invest- Moroccan economy. It is recognised as a uni-
ments in climate change mitigation and adap- versal bank and positioned as the leading digital
tation technologies. bank in Morocco, combining digitalisation with
The new EBRD financing comes under the a large network of bank branches.
Green Economy Financing Facility (GEFF) Morocco is a founding member of the EBRD
in Morocco, which is supported by the GCF. and became a country of operations in 2012. To
A comprehensive technical capacity package date, the EBRD has invested €3bn in the country
complemented by investment incentives, both through 74 projects. ™
funded by the EU, will support CIH Bank in the

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