Page 10 - AfrElec Week 35 2022

AfrElec RENEWABLES AfrElec

South Africa faces difficulties

unlocking climate funds

ZAMBIA ABOUT 80% of the billions of dollars pledged status as a middle-income country limited its
by rich nations for South Africa’s shift away from access to grants, with partners offering loans
coal will be loans, not grants, Reuters reported where the lending rates have yet to be decided
on September 1. According to an official famil- ahead of a November deadline to close the deal.
iar with the matter, some of the money may be The 80% figure may still change as talks con-
hard to unlock due to national rules protecting tinue. According to Reuters, the European Com-
domestic jobs, the news agency writes. mission and the British government, among the
The United States, European Union, Brit- main architects of the scheme, have not yet com-
ain, France and Germany in 2021 committed mented on the matter.
to invest $8.5bn over three to five years to help Additionally, South Africa may struggle
South Africa reduce its carbon emissions, which to free up funds from multilateral institutions
are amongst the world’s highest as the coun- included in the pledge due to its procurement
try depends on coal for 80% of its electricity rules protecting local companies, the source
production. said. That, according to Reuters, raises concerns
If successful, South Africa’s plan to replace about a $1bn commitment from the European
coal-burning facilities with solar and wind farms Investment Bank (EIB), the EU’s financial arm,
would create jobs to compensate for those lost as it can only fund projects with limited prefer-
in the coal sector and could become a model for ence for local content in tenders.
other coal-dependent emerging economies in South Africa has not finalised its list of pro-
the fight against climate change. jects eligible for foreign funds, the sources told
To facilitate this transition, South Africa Reuters. The country has also yet to specify the
has requested grants from international part- total cost for greening its energy system, with
ners, who are instead mostly offering loans at one estimate from analysts putting it at $250bn.
below-market rates. Only less than a fifth would The investment plan, with an estimate of
be handouts, usually for technical support, the long-term costs, is meant to be agreed upon with
source told Reuters. partners at the United Nations’ annual climate
According to the same source, South Africa’s conference in Egypt in early November.™

KarmSolar offers to sell

minority equity stake

KENYA KARMSOLAR, Egypt’s leading private power mobility venture KarmCharge to flourish.
utility and solar energy company, is offering to KarmSolar has strong presence across the
sell a minority equity stake to fund its local and energy value-chain ranging from development,
regional expansion plans. The new investment generation to distribution of power to consum-
round is supported by US-based Synergy Con- ers. The company holds a portfolio of 42 MW
sulting as the sell-side advisor. The capital injec- of secured and financed generation assets, 30
tion will support existing power generation and MW of which are operational, and 48 MVA of
distribution businesses, as well as enable new contracted distribution power capacity in the
business verticals such as solar water desalina- industrial, commercial, agricultural and tourism
tion solutions provider KarmWater and electric sectors, of which 12 MVA are operational.alu™

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