AfDB, South Africa Launch $474m Green Deal

Key Figures & Findings: The African Development Bank (AfDB) has approved a $474.6 million loan to support South Africa’s Infrastructure Governance and Green Growth Programme (IGGGP)—the second phase of its Just Energy Transition plan. This initiative builds on AfDB’s $300 million investment in 2023 and is part of a broader $2.78 billion global financing framework involving the World Bank, Germany’s KfW, Japan’s JICA, and the OPEC Fund. According to South Africa’s Minister of Finance, Enoch Godongwana, the programme is key to tackling the country’s energy and transport bottlenecks, enhancing grid resilience, and positioning the country as a model for inclusive green growth across the continent.

Statistics & Insights: The IGGGP will channel $474.6 million into energy security, power sector reform, and transport efficiency. Women are expected to make up 70% of the beneficiaries under the expanded Social Employment Fund, and the IMF estimates the programme could lift GDP by 0.2–0.4 percentage points annually from 2025–2030.

Future Implications: If fully implemented, the initiative could significantly reduce South Africa’s carbon emissions by 2030 and shape policy reforms across the SADC region. Its emphasis on electric vehicles, green hydrogen, and gender-inclusive development may set the standard for just transition strategies across the continent.

Source: Green Building Africa