South Africa

South Africa has huge renewable energy potential, especially for solar and wind energy. To promote a just and low-carbon energy transition in South Africa, AFD is supporting the development of efficient and green energy services accessible to all. It builds on three major strengths: diversified financing, appropriate technical assistance and an extensive network of partners.

In addition, since 2021, France has been a member of the Just Energy Transition Partnership, an initiative launched at COP26 to accelerate the decarbonization of South Africa’s economy. This commitment will be implemented by AFD.  
AFD today wishes to provide broader assistance to the country’s low-carbon energy transition through various types of support:

• Financing for the national government and municipalities, with a specific focus on the “just” part of the transition and the impact of the coal phase-out in Mpumalanga province  
• Financing and peer-to-peer exchanges with ESKOM, the South African state-owned electricity production and distribution utility, to support the company’s split into three entities and to help diversify its energy mix

AFD supports South Africa’s sustainable urban development policy, which aims to make cities and human settlements inclusive, safe, resilient and sustainable. It provides direct loans to metropolitan municipalities for infrastructure projects and to fund capital budgets to support development policies. It also uses financial intermediaries to support small and medium-sized municipalities in their basic infrastructure investments.

South Africa’s largest cities also call on AFD’s expertise for their initiatives to promote low-carbon urban development and greater resilience to climate change.

Vocational training and access to decent employment, especially for disadvantaged youth, are key to unlocking the economic potential of the country. Currently, more than half of young people aged 15-24 are unemployed in South Africa.

AFD supports the South African Government by partnering with local research institutes. The objective is to gain a better understanding of social and economic inequalities and provide information and potential solutions to reduce inequalities, in particular in the context of the just transition.

The protection of natural ecosystems is central to AFD’s action in South Africa. To halt biodiversity loss and protect ecosystems, AFD supports the restoration and sustainable management of natural areas, with and for local communities. AFD works with the country’s national and local authorities to ensure cooperation between the biodiversity and conservation actors.

Most of the issues related to biodiversity in Southern Africa transcend borders. AFD has developed cross-border operations in three key areas:

• Community-based natural resource management: AFD supports models that promote conservation beyond protected areas, for rural rehabilitation and a sustainable future
• Peer-to-peer cooperation: Recognizing existing expertise in the region, AFD promotes partnerships and capacity building between Southern African and French institutions. For example, through experience-sharing and training, the cooperation project between Réunion National Park and South African National Parks (SANParks) aims to develop efficient regional cooperation and strengthen local know-how in biodiversity conservation  
• Assessment and spatial mapping of biodiversity: Financed by AFD and the French Facility for Global Environment (FFEM), the Spatial Assessment and Mapping of Biodiversity (SBAPP) project aims to broaden and deepen knowledge of biodiversity in South Africa, Mozambique, Namibia and Malawi, and promote cooperation on biodiversity science in the region