By Khulile Thwala
European country, Spain, will be providing South Africa with E42 billion for its energy transition and water needs.
The Spanish funding is being provided through a mixture of financial instruments, with the country’s government working with its development finance institution, Cofides, and SA’s Industrial Development Corporation, said Spain Ambassador to SA Raimundo Robredo Rubio.
News24 reports that while not part of it, the Spanish initiative is in line with the aims of the E154 billion Just Energy Partnership between SA and funding partners including France, Germany, the US, the UK and
the European Union.
The programme has been hailed as a pioneering example of how rich nations can help ween developing nations off their dependence on coal.
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“This is the first time in history we have done something like this,” Robredo said in an interview at his nation’s embassy in Pretoria.
He further said this funding was tailor-made just for SA, with the potential to replicate it in other countries. Spain, along with other developed countries that are not part of the Group of Seven wealthy nations, was not included in the JETP as it was an initiative of that bloc.
Firstly, Spain will provide E297 million in grants for feasibility studies, while the rest of the money will come in the form of loans at about half the cost of commercial credit, risk insurance, and capital investments.