Latest news with #EnochGodongwana
Zawya
an hour ago
- Business
- Zawya
Germany's KFW Bank grants South Africa's $576mln for Just Energy Transition
South Africa has been granted a €500m loan for the implementation of the country's Just Energy Transition (JET) plan by the German Cooperation via KFW Development Bank (KFW). This loan is part of South Africa's third Development Policy Operation and participants included the World Bank, African Development Bank, Japan International Cooperation Agency, and the Organisation of the Petroleum Exporting Countries Fund. 'It supports structural reforms to enhance the efficiency, resilience and sustainability of the country's infrastructure services, with a specific focus on the energy sector and climate mitigation. 'KFW's financing forms part of the government's broader efforts to implement structural reforms that strengthen public institutions, crowd in private investment, and improve service delivery across priority sectors of the economy,' National Treasury said. This loan agreement builds on the two policy loans concluded in 2022 and 2023, and forms part of Germany's pledge at COP26 to support South Africa's Just Energy Transition Partnership (JETP). Germany's three policy loans, implemented by KFW, total €1.3bn and form part of a larger package of JETP projects supported by the German Government via loans, technical assistance and grants. 'The Minister of Finance, Enoch Godongwana, (has) highlighted the significance of South Africa's partnership with Germany and KFW that remains critical to South Africa's development agenda and marks a significant step towards strengthening South Africa's short- and medium-term energy security measures, promoting decarbonisation and enhancing the socio-economic benefits of the energy transition for disadvantaged communities, thereby enabling inclusive economic growth and fostering job creation. 'The minister also emphasised the need for further policy and institutional reforms in the energy sector to create an enabling environment for the investment required for a just energy transition,' National Treasury said. KFW's country director for South Africa, Cornelia Tittmann, said the loan seeks to support the government of South Africa's continued commitment to reforms in the energy sector, which give effect to South Africa's climate commitments and enable the private sector to participate, opening new avenues to strengthen economic cooperation between Germany and South Africa. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
The Herald
an hour ago
- Business
- The Herald
Department trains ECD practitioners to 'rescue' foundation-phase learning
'The minister and the department remain committed to ensuring every child has access to a qualified practitioner and a curriculum-rich early learning environment. Improving the quality and reach of ECD is central to ensuring children who enter Grade 1 are cognitively, emotionally and physically ready to learn, and forms the foundation of a more equitable and effective basic education system.' This year finance minister Enoch Godongwana announced an additional R10bn investment in ECD over the next three years. The funding will raise the daily subsidy from R17 to R24 per child and is expected to increase access for about 700,000 more children up to the age of four. Speaking at the Bana Pele (Children First) summit in March, President Cyril Ramaphosa reinforced government's commitment to early learning. 'As South Africans we have a clear goal for all our children, access to quality learning opportunities for an additional 1.3-million children by 2030. I think it's possible,' he said. Investment in ECD provides substantial returns, he added.. 'Studies have shown every rand spent on ECD can save up to R7 in future costs associated with remedial education, social services and criminal justice. 'ECD is critical for developing foundational skills such as language, literacy and numeracy,' he said, citing a study that estimated an investment of 2.1% of GDP in universal childcare could enable 10.5-million women to join the workforce over three years. Ramaphosa also addressed the literacy crisis, pointing to data that shows 80% of grade 4 pupils cannot read for meaning. TimesLIVE
Business Insider
a day ago
- Business
- Business Insider
Africa's richest country gets €500 million loan from Germany for fossil-fuel move
Germany has approved a €500 million ($582 million) loan to support South Africa's transition away from fossil fuels. Germany has approved a €500 million loan to South Africa for its energy transition. The loan is provided through KfW and GIZ with concessional terms. Germany's financial support under JETP totals €1.3 billion so far. Germany has approved a €500 million ($582 million) loan to support South Africa's transition away from fossil fuels, deepening its financial commitment to the country's decarbonization efforts under the Just Energy Transition Partnership (JETP). The 13-year facility, provided through the German state-owned development bank KfW and implemented by the German Society for International Cooperation (GIZ), includes a three-year grace period and carries a fixed interest rate of 4.31%, the South African National, according to Bloomberg. The loan builds on two prior agreements finalised in 2022 and 2023, bringing Germany's total concessional loan support to South Africa via KfW to €1.3 billion. The funding is part of Germany's pledge under the broader $8.3 billion JETP package launched at COP26, which also includes financial backing from other major donors such as France, the UK, the US, and the EU. The latest round of financing will help bolster South Africa's short- and medium-term energy security while advancing its decarbonization goals, said Finance Minister Enoch Godongwana. South Africa generates approximately 80% of its electricity from coal, making it the most carbon-intensive economy among the G20 nations. The country's ageing coal-fired power fleet has also contributed to chronic electricity shortages, prompting urgent calls for investment in renewable energy infrastructure. Multilateral partners join the push for clean energy In addition to German support, other JETP financiers participating in the latest disbursement include the World Bank, African Development Bank, Japan International Cooperation Agency (JICA), and the OPEC Fund for International Development. In 2023, South Africa received $676 million in grant funding from wealthy nations to support its transition to cleaner energy. However, the government estimates that fully transitioning away from fossil fuels, such as coal, which currently accounts for 80% of the country's electricity generation and a third of its liquid fuel production, will require an estimated investment of 1.5 trillion rand ($78.4 billion).
IOL News
a day ago
- Business
- IOL News
Germany advances South Africa's Just Energy Transition with R10bn loan
The National Treasury on Monday said this KFW loan, which forms part of the country's third Development Policy Operation, signified a continued commitment to structural reforms crucial for enhancing the efficiency, resilience, and sustainability of the country's infrastructure, particularly within the energy sector. Image: Supplied Germany has finalised a €500 million (around R10.4 billion) loan aimed at supporting South Africa's Just Energy Transition (JET) through the KFW Development Bank (KFW). The National Treasury on Monday said this KFW loan, which forms part of the country's third Development Policy Operation, signified a continued commitment to structural reforms crucial for enhancing the efficiency, resilience, and sustainability of the country's infrastructure, particularly within the energy sector. The loan agreement, signed in the presence of prominent stakeholders including the World Bank, the African Development Bank, the Japan International Cooperation Agency, and the OPEC Fund, builds on two previous policy loans concluded in 2022 and 2023. Altogether, these initiatives represent Germany's pledge made at the COP26 summit to aid South Africa's Just Energy Transition Partnership, which is designed to combat climate change while supporting the country's socio-economic development. On Monday, Finance Minister Enoch Godongwana underscored the significance of this partnership, pointing out that the collaboration with Germany and KFW was vital for advancing the nation's development agenda. Godongwana said this loan was a significant step towards strengthening short- and medium-term energy security measures, promoting decarbonisation, and ultimately realising inclusive economic growth through job creation for disadvantaged communities. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading He further emphasised the need for ongoing policy and institutional reforms in the energy sector, adding that he believed that creating an enabling environment was essential to attract the necessary investments for a successful and just energy transition. Echoing these sentiments, Cornelia Tittmann, KFW's country director for South Africa, expressed optimism about the potential impacts of the loan. Tittmann said this financial assistance sought to support the South African government's commitment to energy sector reforms, which will facilitate the country's climate obligations and engage the private sector, thus opening new avenues for economic cooperation between Germany and South Africa. KFW's financing, which totals €1.3bn over three policy loans, is a cornerstone of the broader efforts to implement structural reforms. These goals include strengthening public institutions, catalysing private investments, and improving service delivery across key sectors in the South African economy. Tittmann specifically acknowledged the leadership of the National Treasury in coordinating this operation, highlighting the strengths of a collaborative approach over the past four years. According to Treasury, the financial terms of the new loan are notably favourable, featuring a nominal value of €500m, with a maturity of 13 years and a three-year grace period, alongside a fixed interest rate of 4.31%. The KFW loan also comes after South Africa last week inked a 15-year, R8.4bn loan agreement with the African Development Bank in a bid to bolster its energy transition efforts. This financing is part of the third Development Policy Operation and comes with collaboration from key international players including the World Bank, KFW, Japan International Cooperation Agency, and the Organization of the Petroleum Exporting Countries Fund for International Development (OPEC Fund). In November 2024, Agence Française de Développement (AFD) also finalised a landmark R7.6bn loan to drive South Africa's Just Energy Transition Plan (JETP). This loan builds on the €300 million (R5.7bn) public policy loan provided in 2022, bringing France's total contribution to the JETP to €700m of the €1bn pledged at COP26 in Glasgow. BUSINESS REPORT
The South African
a day ago
- Business
- The South African
South Africa secures R10.4 billion loan from German bank
South Africa has been granted a €500 million (R10.4 billion) loan for the implementation of the country's Just Energy Transition (JET) plan by the German Cooperation via KFW Development Bank (KFW). ALSO READ | South Africans doubt R7 billion BRICS loan will be used to fix roads This loan is part of South Africa's third Development Policy Operation and participants included the World Bank, African Development Bank, Japan International Cooperation Agency, and the Organisation of the Petroleum Exporting Countries Fund. 'It supports structural reforms to enhance the efficiency, resilience and sustainability of the country's infrastructure services, with a specific focus on the energy sector and climate mitigation. 'KFW's financing forms part of government's broader efforts to implement structural reforms that strengthen public institutions, crowd in private investment, and improve service delivery across priority sectors of the economy,' National Treasury said on Monday. This loan agreement builds on the two policy loans concluded in 2022 and 2023, and forms part of Germany's pledge at COP26 to support South Africa's Just Energy Transition Partnership (JETP). Germany's three policy loans, implemented by KFW, total €1.3 billion and form part of a larger package of JETP projects supported by the German Government via loans, technical assistance and grants. 'The Minister of Finance, Enoch Godongwana, [has] highlighted the significance of South Africa's partnership with Germany and KFW that remains critical to South Africa's development agenda and marks a significant step towards strengthening South Africa's short- and medium-term energy security measures, promoting decarbonisation and enhancing the socio-economic benefits of the energy transition for disadvantaged communities, thereby enabling inclusive economic growth and fostering job creation. 'The Minister also emphasised the need for further policy and institutional reforms in the energy sector to create an enabling environment for the investment required for a just energy transition,' National Treasury said. KFW's Country Director for South Africa, Cornelia Tittmann, said the loan seeks to support the government of South Africa's continued commitment to reforms in the energy sector, which give effect to South Africa's climate commitments and enable the private sector to participate, opening new avenues to strengthen economic cooperation between Germany and South Africa. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1 Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X and Bluesky for the latest news.
