OeEB signed a long-term credit line of USD 20 million to FirstRand Bank Ltd. for the financing of renewable energy projects in South Africa.
The South African energy market is marked by electricity scarcity with frequent power failures and power rationing. Many cities and towns don't have a stable power supply. Moreover, more than 90% of the energy production is based on fossil fuels.
The government therefore aims to expand energy production from renewable energy resources in order to provide underdeveloped regions with clean, affordable energy and to reach the country's CO2 targets. However, the local financial sector can not or not adequately provide the long-term financing needed for the implementation of energy projects.
OeEB's credit line supports FirstRand Bank Ltd. in providing long-term financing for renewable energy projects (wind, solar and small hydro power projects) in South Africa. This contributes to climate protection, improves the energy supply and reduces dependence on fossil fuels.
Further projects with FirstRand Bank Ltd.:
OeEB credit line for infrastructure projects in Sub-Saharan Africa