IFC, Nedbank partner to increase green financing in South Africa

Monday 21 December 2020 11:53 CET | News

IFC, a member of the World Bank Group, and Nedbank Limited have partnered to increase financing for renewable energy projects in South Africa.

The partnership is aimed at helping the country transition to cleaner forms of power, reduce greenhouse gas emissions, and create jobs in the renewables sector.

IFC will provide Nedbank Limited, a wholly owned subsidiary of Nedbank Group, with a loan of up to USD 200 million to help it expand its green finance operations and grow its climate portfolio by funding renewable energy projects. 

The partnership is part of IFC’s broader objective to develop South Africa’s climate finance market and to support the Government of South Africa’s plan to shift to a lower carbon economy. South Africa has set the goals of reducing greenhouse-gas emissions by 42% by 2025 and diversifying its electricity production to reduce its reliance on coal by 2050.

Nedbank is Africa’s first carbon-neutral bank and in 2019 became South Africa’s first commercial bank to launch a green bond on the Johannesburg Stock Exchange.

IFC estimates South Africa’s climate-smart investment potential across renewable energy and urban infrastructure, including rail transport, electric vehicles, and green buildings, amounts to USD 588 billion through 2030. The government plans to more than double the country’s power capacity by 2030, with renewables making up as much as 20% of the mix.

This is IFC’s third investment dedicated to green finance in South Africa’s financial sector. 

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Keywords: IFC, Nedbank, green financing, South Africa
Categories: Banking & Fintech
Countries: Africa
This article is part of category

Banking & Fintech