Latest news with #greengrowth
Zawya
03-07-2025
- Business
- Zawya
Turning tides: South Africa's infrastructure reforms benefit from $474.6mln loan approval
South Africa is set to fast-track its just energy transition and infrastructure reforms with the backing of a historic $474.6m loan approved by the African Development Bank Group for the country's Infrastructure Governance and Green Growth Programme (IGGGP). This forms part of a broader $2.78bn international financing package, underscoring global confidence in South Africa's green ambitions. As Africa's most industrialised economy and a key regional power hub, South Africa's progress in modernising its energy and transport sectors is expected to serve as a blueprint for similar transitions across the continent. The IGGGP represents the second phase of the Bank's strategic support, following the successful $300m Energy Governance and Climate Resilience Programme approved in 2023. Structured around three pillars—enhancing energy security through power-sector restructuring, supporting a low-carbon and just transition, and improving transport efficiency—the programme aims to promote sustainable, inclusive growth. It also places strong emphasis on green industrialisation, skills development, and job creation, including support for electric-vehicle manufacturing and green hydrogen production. Driving critical reforms Minister of Finance Enoch Godongwana welcomed the funding, stating, 'Our country faces the significant challenge of energy shortages, leading to load shedding, as well as significant transport bottlenecks… With your partnership, our government has committed itself to stay the course and implement these critical reforms.' Recent IMF estimates suggest that South Africa's Just Energy Transition could raise GDP growth by 0.2 to 0.4 percentage points annually between 2025 and 2030. The programme will also include targeted grant components to promote energy efficiency and rail-sector reform, including vertical separation and investment frameworks for freight and logistics. Kennedy Mbekeani, African Development Bank Group Director General for Southern Africa, described the programme as more than financing: 'It's a blueprint for Africa's energy future.' The IGGGP incorporates robust environmental and social safeguards, with a strong focus on gender and youth empowerment. Women are expected to make up 70% of the beneficiaries of the expanded Social Employment Fund, and youth-targeted training will prepare the next generation for green economy opportunities. The programme contributes to multiple Sustainable Development Goals, aligning with South Africa's climate commitments under the Paris Agreement.
Zawya
21-05-2025
- Business
- Zawya
Egypt launches regional forum to accelerate climate finance in Africa
Egypt launched the 'Africa Grows Green for Climate Finance' forum on Tuesday in the New Administrative Capital, bringing together senior government officials, financial institutions, and international organizations to advance climate finance across Africa amid growing calls for more equitable funding mechanisms. Held under the auspices of the Ministry of Environment and organized by the Sustainability Foundation for Quality of Life, the high-level event convened ministers of industry, finance, environment, and transport, alongside representatives from the World Bank, Central Bank of Egypt, Financial Regulatory Authority, and the private sector. Kamel Al-Wazir, Minister of Industry and Transport, underscored the need to rethink development models in the face of climate change. He highlighted Egypt's green growth strategy—focused on low-emission transport and sustainable industry—pointing to public transport projects like electric trains and monorails, expected to cut CO₂ emissions by 9 million tonnes annually by 2030. He also emphasized finance as a key enabler of green industrial transformation, citing initiatives such as the voluntary carbon market and circular economy projects in Upper Egypt. Environment Minister Yasmine Fouad praised the forum for fostering collaboration among public and private stakeholders. She noted Egypt's transport sector had surpassed its 2022 emissions targets, as outlined in its Biennial Transparency Report. Fouad stressed the need for regulatory reforms and incentives to attract private capital into climate adaptation sectors like agriculture and waste management. Finance Minister Ahmed Kouchouk reaffirmed the private sector's central role in closing Egypt's climate finance gap. He announced plans for new fiscal incentives to support green investment and reiterated Egypt's ambition to become a regional clean energy hub. Representing Planning Minister Rania Al-Mashat, Mona Essam noted that while Africa holds $3 trillion in green investment opportunities by 2030, it receives just 3% of global climate finance—despite climate impacts costing the continent around 5% of GDP annually. Financial Regulatory Authority Chairman Mohamed Farid highlighted recent updates to capital market rules supporting green bonds and carbon credit trading. He said Egypt's regulated voluntary carbon market allows companies to monetize emissions reductions and finance adaptation projects previously deemed unbankable. Tarek El-Khouly, Deputy Governor of the Central Bank of Egypt, said the banking sector is undergoing a green shift, with institutions adopting climate risk assessments and issuing sustainability-linked bonds. The central bank has mandated that banks measure the carbon footprint of their portfolios and integrate sustainability governance practices. Ambassador Wael Aboulmagd, Assistant Foreign Minister for Climate and Sustainable Development, emphasized Egypt's leadership in African climate diplomacy, referencing its role in key initiatives under the Paris Agreement and its chairmanship of the African Group of Negotiators. Reem Abdel Meguid, Head of the Sustainability Foundation, said the forum aims to close the knowledge and access gap between project developers and financing institutions. It builds on Egypt's COP27 legacy and supports regional collaboration to scale green finance. The forum features three core sessions: developing policy frameworks for climate investment, mobilizing international funding for adaptation and mitigation, and enabling SMEs to access green finance. The final session, titled 'A Call to Action,' will push for deeper regional cooperation and co-investment in Africa's sustainable future.
