Adesina told Minister for Mineral Resources and Energy, Gwede Mantashe, that the Bank was in the process of setting up an African Energy Transition Facility to help South Africa secure adequate financing for its energy transition.
He said: “South Africa cannot and should not embark on the journey of energy transition without the necessary financial support.” He said through the African Energy Transition Facility, “South Africa can leverage on the $8.5 billion in grants from the G7 countries to generate all the money it needs for its just energy transition without getting into debt.”
The African Development Bank estimates that South Africa would need more than $30 billion for transition to renewable energy.
The Bank is financing several renewable energy projects in South Africa, including the 100-megawatt Sere wind power plant, the 100-megawatt Xina solar power concentrated power plant, and the award-winning 100 megawatts Red Stone solar project. The Bank is also preparing a $400 million package to support the country’s electricity utility company, Eskom, as it transitions to renewable energy.
