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South Africa to get $80m loan from German KfW, IDC SA to invest in green economy


Devdiscourse News Desk pretoria Germany
Updated: 06-02-2019 20:43 IST
South Africa to get $80m loan from German KfW, IDC SA to invest in green economy

The loan facility dubbed the South African facility for Green Growth (SAFGG), is earmarked for local entities to invest in green economy projects. Image Credit: Pixabay

South Africa will be getting a gargantuan amount of USD 80 million loans from Frankfurt-headquartered German government-owned development bank KfW and Industrial Development Corporation of South Africa to enhance green economy projects across the country.

According to Dr Stefan Peiß, executive board member of KfW, the loan facility dubbed the South African facility for Green Growth (SAFGG), is earmarked for local entities to invest in green economy projects. It will have a beneficial impact on environmental protection and resource efficiency with regard to water resource protection and conservation.

"The facility will also enable local entities to access funding to invest in the green economy, the result of which will be to help mitigate the impact of carbon dioxide emissions," Dr Stefan Peiß opined, as reported by Construction Review Online.

Peiß was present during the signing of an agreement between Industrial Development Corporation of South Africa (IDC) and KfW with IDC's newly appointed Chief Executive Officer TP Nchocho. According to Nchocho, the loan facility from KfW would significantly boost the IDC's objectives of increasing its investment in renewable energy initiatives and infrastructure related projects.

"The support of KfW has largely helped us to meet our developmental mandate especially regarding supporting the growth of local [small and medium-sized enterprises] in various sectors of the economy, including agriculture, light manufacturing and tourism," Nchocho added.

COUNTRY : GermanySouth Africa

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