HomeRenewable energyRenewable projects in South Africa to be financed by AFD

Renewable projects in South Africa to be financed by AFD

13 October 2009 – A US$177m credit facility to commercial banks in South Africais to be provided by Agence Francaise de Developement (AFD) for financing small energy efficiency and renewable energy projects.

Absa Bank Ltd, Nedbank Group Limited and the Industrial Development Corporation of South Africa Limited are expected to utilise the facility, which is intended to help increase activity in the SME sector, where the profitability of renewable energy investments is probably not as attractive as for larger projects.

The banks will offer a 12-year reimbursable credit facility up to US$14.8m, with no minimum amount specified. Suitable projects will be identified by early 2010.