By Thebe Mabanga
South Africa has secured a €500 million (R10.4 billion) public policy loan from Germany’s state-owned KfW Development Bank to support the implementation of its Just Energy Transition Investment Programme (JETIP).
“Through continued collaboration with South Africa, German Cooperation via KFW Development Bank (KFW) has concluded a €500 million loan for the implementation of the country’s Just Energy Transition (JET).” National treasury said in a statement on Monday.
The loan follows two earlier tranches disbursed in 2022 and 2023, bringing Germany’s total commitment to €1.3 billion (R27 billion).
It forms part of Germany’s contribution to the $8.5 billion (€7.3 billion, R151 billion) pledged at COP26 in Glasgow to support South Africa’s transition to a low-carbon economy.
The latest loan carries a 13-year maturity, a three-year grace period, and an interest rate of 4.31%.
This loan is part of South Africa’s third Development Policy Operation and participants included the
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