Proparco and Investec Bank are collaborating to implement the Transforming Financial Systems for Climate (TFSC) programme in South Africa. The package comprises a senior credit facility of $80 million and a technical assistance programme.
TFSC is a global facility worth $650 million, covering 17 countries. Within a South African context and in line with AFD Group's broader objectives, TFSC aims to support South Africa's pathway to a low-carbon economy and climate resilient society. South Africa has set an ambitious goal of reducing carbon emissions by 42% by 2025 and diversifying its electricity production away from coal by 2050.To participate in this goal, Proparco, on behalf of AFD Group, just provided a $80 million climate finance-dedicated credit
facility to Investec. After the collaboration with FirstRand Bank Limited, announced in October 2022, marking the launch of AFD Group's TFSC programme in South Africa, Investec is now the second bank to have joined the programme.
This transaction aims to support Investec in its efforts to expand climate-related financing in South Africa, thanks to a long term senior credit facility of $80 million, complemented by a technical assistance package under the TFSC programme.
The transaction will contribute to South Africa's transition to a low-carbon economy by enabling Investec to finance projects aligned with the highest climate finance standards both in terms of mitigation and adaptation.
"We are very proud and excited for this first cooperation between Proparco and Investec, a leading South African bank resolutely committed to sustainability. We trust Investec's expertise and capacity to innovate, coupled with the financing package provided by Proparco, will help bring climate finance one step further in South Africa," said Emmanuelle Riedel Drouin, global head of lending operations at Proparco.
"After a thorough process of engagement, we are delighted to announce this partnership with Proparco, which enables us to make a meaningful advancement in our joint climate ambitions," says Tanya Dos Santos-Ford, Investec Group's head of sustainability. "Investec remains steadfast in our commitment to a fair, efficient and inclusive energy transition. This senior credit facility enables us to provide further finance and support for both our clients - as they progress their climate ambitions - and for our country as we help to build a more climate resilient and equitable South Africa."« Back to Member News