- Proparco partners with Investec Bank to implement the Transforming Financial Systems for Climate (TFSC) program with $80 million in financing for climate projects.
Proparco, the subsidiary of the French Development Agency (AFD) group, is entering into a partnership with Investec Bank in South Africa. The two financial institutions will implement the Transforming Financial Systems for Climate (TFSC) program in the rainbow nation. An AFD and the Green Climate Fund (GCF) initiative, this $650 million global program supports local financial institutions in scaling up climate impact finance in 17 countries, primarily in Africa.
Proparco has awarded Investec Bank an 80 million dollar loan facility under the TFSC. A technical assistance program will help the Anglo-South African bank as it works to establish climate finance in South Africa.
The new alliance, according to Proparco, aims to aid Investec in its initiatives to expand climate finance in South Africa. AFD’s private sector lending division states. “This transaction will contribute to South Africa’s transition to a low-carbon economy by enabling Investec to finance ambitious projects aligned with the highest standards of climate finance, both in terms of mitigation and adaptation,” says AFD’s private sector financing arm.
South Africa is looking to quicken the ecological transformation. One aspect of this is lowering its reliance on coal. This fossil fuel generates 80% of the electricity in its national grid. Proparco supports this shift, especially with a $100 million loan provided under the TFSC program to the FirstRand bank. The Bank of Industry (BOI), Nigeria’s largest development finance institution with over €4 billion in assets by 2021, has profited from the initiative.