South Africa

South Africa is one of the leading economic powers in Africa. Yet the country continues to be marked by high levels of socioeconomic inequalities. AFD’s support has historically focused on the upliftment of disadvantaged populations. Since 2008, it has also been supporting infrastructure development and is scaling up its climate action.
Cape Town minibus station (South Africa)
AFD and South Africa: A sustainable and innovative partnership
Cape Town minibus station (South Africa)

Supporting sustainable and balanced urban and territorial development

South Africa Meeting with an AFHCO housing tenant

Supporting sustainable and balanced urban and territorial development

In South Africa, AFD is supporting sustainable and balanced urban and territorial development by financing local governments, together with financing for social housing, a core component of poverty reduction policies.

Supporting the energy transition

Laying of a pipe to recover methane produced by waste South Africa

Supporting the energy transition

AFD is supporting the energy transition, particularly for South African SMEs seeking to invest in renewable energies or energy-saving processes. AFD is continuing its cooperation with Eskom on the issues of power transmission and distribution.

Improving opportunities for access to employment

Street ambiance in South Africa

Improving opportunities for access to employment

AFD is working to improve opportunities for access to employment by developing vocational training and higher education programs, and to set up facilities to provide poor populations with access to the education system, such as student housing and student loans.

With a population of some 53 million inhabitants and an annual income of some USD 7,200, South Africa is one of the leading economic powers in Africa. Its economy accounts for 23% of GDP in Sub-Saharan Africa and over 60% of the GDP of Southern Africa. The country is marked by the volume and variety of its mineral resources, a well-developed financial sector, strong industrial system, effective legal and communication sectors and modern, albeit inadequate, infrastructure. Indeed, South Africa has to address a real need for the development of its infrastructure and job creation, a prerequisite for restarting its economy. Despite the implementation of catch-up policies since 1994 and considerable strides, the unemployment rate is particularly high, with job creation hampered by structural problems, especially the level of qualification of workers and poor real growth performance. South Africa also needs to face major environmental and structural challenges.

AFD has been operating in South Africa since 1994, by offering innovative financing solutions and technical assistance to support the Government’s development policy. The Johannesburg agency also covers AFD’s activities in Botswana, Lesotho, Malawi, Namibia, Zambia and Zimbabwe.

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