DEG mobilizes USD 300 million to strengthen climate resilience in South Africa

DEG is providing South Africa’s FirstRand Bank with a syndicated loan of USD 300 million to finance investments in renewable energies and to support German companies. Its own share of the loan amounts to USD 100 million, making this the largest syndication in DEG’s history to date. The other investors are the development finance institutions FMO from the Netherlands and Proparco from France, which are contributing USD 100 million each.

The financing supports the Just Energy Transition process in South Africa, which aims to accelerate the transformation of the energy sector and significantly reduce CO₂ emissions. The focus is on expanding investment in renewable energies in order to promote inclusive growth and climate resilience. The commitment will also help to strengthen German companies in the region and enable them to participate in sustainable projects.

“FirstRand and DEG have enjoyed a partnership spanning almost two decades. This groundbreaking transaction underscores our shared commitment to impact and climate. We are delighted to be working with our European partners FMO and Proparco to strengthen climate adaptation and climate resilience in South Africa,” commented Monika Beck, a member of DEG’s Management Board.

“FirstRand welcomes the renewed collaboration with DEG, Proparco and FMO to provide additional capacity for a crucial sector of the South African economy,” added Bhulesh Singh, Group Treasurer of FirstRand Bank. “For a country that is fighting poverty and at the same time exposed to food security risks brought on by drought, climate resilience is vitally important.”

With over 40,000 employees, FirstRand Bank is one of the country's largest financial institutions: it is South Africa’s second-largest bank and the primary subsidiary of FirstRand Limited Group. DEG has not only supported the company financially, but also provided expert advice, including the development of internal training programmes on financing sustainable investments, as well as initiatives in the field of biodiversity.