- Norfund and CDC will finance clean climate and energy projects in South Africa.
- South Africa targets 20GW of new renewable capacity over the next ten years.
The transaction represents a joint vision by the two DFIs to mobilise climate finance to Africa and back clean infrastructure projects across the continent. The investment from Norfund and CDC, which will soon be renamed British International Investment, will help to improve access to clean and affordable energy in South Africa. It will also support South Africa’s clean energy goals, as it will enable H1 Capital to fund a pipeline of over 2.4 GW of new wind and solar projects, generating about 6,400GWh/y.
Norway International Development Minister Anne Beathe Tvinnereim says the new Norwegian climate investment fund, managed by Norfund, will be the government’s most efficient tool to help accelerate the global clean energy transition. Norfund and CDC Group state that South Africa has tremendous economic potential in a joint statement. The government sets an ambitious target to generate 20 GW of new renewable capacity over the next decade to address power shortages and decarbonise South Africa’s power generation fleet.
South Africa’s target to generate 20 GW of new renewable capacity over the next ten years is indicative of the country’s bold steps toward securing a net-zero future for itself,” says UK Minister for Africa Vicky Ford. Further, the parties state that the investment in H1 Capital demonstrates the commitment by the UK and Norway to act on pledges made at COP26 of scaling climate finance to Africa and deepening collaboration on solutions that will meet Africa’s needs and address climate change.
Norfund and CDC Group’s commitment also contribute to United Nations’ Sustainable Development Goal (SDG) seven – affordable and clean energy, SDG eight – good jobs and economic growth, and SDG 13 – climate action. In addition, CDC Group CE Nick O’Donohoe says the investment marks another key step toward fulfilling the group’s pledge to devote greater capital to fund clean infrastructure and support markets like South Africa on a just transition.