Supporting a “just” energy transition
Promoting sustainable and balanced urban and territorial development
Creating opportunities for all and reducing social inequalities
With a population of about 59 million and an annual income of nearly US $ 12,390 per capita, South Africa is one of the largest economies on the African continent. With a GDP of over US$ 320 billion at the end of 2015, South Africa is the second economy of sub-Saharan Africa after Nigeria.
South Africa has a rich and varied mineral wealth, a well-developed financial sector, efficient legal and communication sectors and modern infrastructure. Despite the formal eradication of apartheid in the early 1990s and a much-celebrated transition to democracy in 1994, South Africa remains a land of stark economic inequalities along racial lines. In addition, the country has experienced high unemployment, patchy service delivery and governance issues facing state-owned companies.
South Africa is amongst the world's most carbon-intensive economies due to its heavy reliance on coal for electricity generation and an energy-intensive industrial and mining sector. However, the country has shown great commitment to reducing carbon emissions by decreasing its dependence on coal, and increasing energy generation from renewable sources by 2030. If these efforts are sustained, carbon emissions should stabilise between 2025 and 2030 and decline thereafter.
AFD has been active in South Africa since 1994, offering innovative financing solutions and technical assistance to support the South African government in its development policy. AFD works with government partners and local authorities to promote a low-carbon economy and reduce economic, social and territorial inequalities.
Around half of AFD’s projects are co-financed with partners – not just other development banks – but also research institutions, universities, NGOs, foundations, think tanks, development institutions, United Nations agencies and local and regional authorities. Co-financing helps to multiply the impact of our projects and attract other partners, and allowing us to be even more ambitious.
AFD's South Africa office is directly attached to the Southern Africa regional office.