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South Africa in talks with energy partners on loan guarantees

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South Africa in talks with energy partners on loan guarantees

Powerlines

25th October 2024

By: Bloomberg

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South Africa is in talks with its international climate-finance partners over the provision of guarantees for loans for the construction of energy-related infrastructure.

“We are managing, in particular, issues with our international partners” around guarantees, said Joanne Yawitch, head of the project management unit for the $9.3-billion pact within the South African presidency, at an event in the eastern town of eMalahleni on Friday. “We are on the edge of seeing some of that finance flowing.”

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Guarantees have been a sticking point for the rolling out of funds from the so-called Just Energy Transition Partnership because the South African government has been reluctant to add to its contingent liabilities. South Africa’s partners in the pact are France, Germany, the UK, US, European Union, the Netherlands and Denmark.

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