Nedbank raises US$64.5m to finance green projects in South Africa

SOUTH AFRICA – Financial services group Nedbank has raised R910 million (US$64.5 million) to finance green infrastructure projects in South Africa. The capital raise comes as the South African government is driving renewable energy in the country to boost energy security. This, as power utility Eskom, which provides over 90% of South Africa’s power needs, has battled to keep the lights on, much to the detriment of the economy. In a statement, Nedbank says a total of R910 million (US$64.5 million) was raised through the issuance, which took place in…

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Green Climate Fund approves US$170.9m in co-financing for AfDB’s Leveraging Energy Access Finance Framework program

AFRICA – The Board of the Green Climate Fund (GCF) has approved US$170.9 million in financing for the African Development Bank’s Leveraging Energy Access Finance Framework (LEAF) program which aims to unlock commercial and local-currency financing for decentralized renewable energy (DRE)  projects in six program countries: Ghana, Guinea, Ethiopia, Kenya, Nigeria, and Tunisia. The Green Climate Fund’s financing is part of an overall US$900 million program budget whose objective is to scale up the roll-out of mini-grids, solar home systems, and commercial and industrial solar solutions in the program countries. Tony Clamp,…

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African Guarantee Fund receives US$20m capital injection from IFU for green SME financing

AFRICA – The African Guarantee Fund has received a capital increase of US$ 20 million from the Danish Investment Fund for Developing Countries (IFU) to facilitate green SME financing in Africa. The capital increase is partially financed by the Danish Government, as part of the Danish “COVID-19 Development Assistance” package. Inclusive of the additional US$20 million, the total Danish investment in AGF amounts to US$71.8 million.   The capital increment into the African Guarantee Fund will increase the Fund’s capacity to unlock financing for Small and Medium Enterprises (SMEs) in Africa. SMEs in…

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Absa Bank gets US$150m loan from IFC for green financing in South Africa

SOUTH AFRICA – The International Finance Corporation (IFC0, a member of the World Bank Group, will provide Absa Bank, one of Africa’s largest financial services groups, with a loan of up to US$150 million  to support the bank’s strategy to expand its climate finance business and help South Africa meet its greenhouse gas reduction targets. Africa’s first certified green loan, announced by the International Finance Corporation to Absa Bank, would increase funding for biomass and other renewable energy projects in South Africa, supporting the country’s power sector and economic recovery…

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KCB Bank secures US$150m credit for SMEs and green projects

KENYA – Kenya Commercial Bank has secured a US$ 150 Million credit facility to enable it to increase lending to climate-friendly projects and small business enterprises, especially those run by women. US$101.7 million of the money will come from the International Finance Corporation (IFC) while Belgian Investment Company for Developing Countries (BIO) will provide US$22 million and Sanad fund, which finances SMEs in the Middle East and sub-Saharan Africa, and Symbiotics, the investment platform targeting companies in emerging markets, will contribute US$15 million and US$11.2 million respectively. “This support from IFC and our…

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MTN commits to zero greenhouse gas emissions by 2040 to contribute to a sustainable future

SOUTH AFRICA – Africa’s biggest mobile provider MTN, has committed to net zero greenhouse gas emissions (GHG) by 2040 amid global momentum to meet the Paris Agreement’s 1.5°C limit. MTN said in a press release that it had set science-based targets to achieve a 47 percent average reduction in absolute emissions for scope 1, 2 and 3 by 2040. Group president and chief executive, Ralph Mupita, said MTN had a role to play in Africa and the Middle East to contribute meaningfully on much-needed actions to mitigate the impact of…

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Development Bank of Southern Africa launches its first US$240m green bond

SOUTH AFRICA – The Development Bank of Southern Africa (DBSA) has launched its first green bond, worth US$240 million in its bid to increase its role in climate financing. The bond was issued through a private placement with the French development finance institution, the Agence Française de Développement. The bank said the bond would be structured in alignment with its recently released Green Bond Framework. The framework reiterates the DBSA’s commitment to playing a role in the just transition to a low-carbon economy and is aligned with the International Capital…

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Kenya gets US$18m for green trade and Covid-19 war from Denmark

KENYA – The government of Kenya has received US$18 million support from Denmark to help promote East Africa regional trade and combat Covid-19 pandemic. The funding will be channelled through TradeMark East Africa (TMEA), which works with governments in the region to reduce trade barriers through automation and setting up of the required infrastructure such as One Stop Border Posts (OSBPs). The Danish funding comes in two financial agreements with US$15 million funding Kenya’s efforts to transition to Green Trade and creating sustainable jobs under the Denmark and Kenya Strategic…

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Flat6Labs partners Impact Partner to launch program that supports green economy startups

NORTH AFRICA – Impact Partner, a financial marketing organization, and Flat6Labs, a regional startup accelerator program, are joining forces and the expertise of their teams to launch GreenWorks program to support startups operating in the green economy sector in North Africa, particularly Tunisia. The GreenWorks program was designed to support entrepreneurs who focus on sustainable development and the green economy and to help them build their resilience. Impact Partner and Flat6Labs are joining their efforts and the know-how of their teams to launch this support program for startups operating in…

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Nedbank secures US$200m from IFC to increase green financing in South Africa

SOUTH AFRICA – International Finance Corporation (IFC), a member of the World Bank Group, and Nedbank have partnered to increase financing for renewable energy projects in South Africa, helping the country transition to cleaner forms of power, reduce greenhouse gas emissions, and create jobs in the renewables sector. IFC will provide Nedbank, a wholly owned subsidiary of Nedbank Group, with a loan of up to US$200 million to help it expand its green finance operations and grow its climate portfolio by funding renewable energy projects. The partnership is part of…

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