South Africa’s Industrial Development Corporation (IDC) has signed an agreement with France's development agency, Agence Française de Développement (AFD), for a €60-million credit line aimed at local small-scale green projects.
The facility, a collaboration under the Sustainable Use of Natural Resources and Energy Finance initiative, provides long-term loans on attractive terms for developers who find it difficult to access funding for renewable-energy and energy efficiency projects.
The IDC will use the credit line to provide loans directly to small and medium-sized companies according to certain criteria, such as the size of the project and the environmental impact of the project.
The facility will also contribute to the creation and preservation of jobs at companies that are highly exposed to rising electricity and energy tariffs.
Complementary to the credit line, technical assistance of €3-million will be made available to enable IDC to strengthen its capacities in clean energy finance. It will also provide expertise for project developers to define and improve their green energy projects.
The €3-million has been provided by Swiss organisation SECO, through the South African National Energy Development Institute.