French development financier Agence Française de Développement (AFD) expects to disburse €1.3-billion in funding support to South African projects in the coming five years as part of a newly approved operational strategy for the country.
AFD says the funding will take the form of nonsovereign loans, grants for capacity building and technical assistance, as well as guarantees.
“We’ve committed more than €2.3-billion in loans since we started operations in South Africa in 1994 with 44% dedicated to improvement in access to basic services and 55% dedicated to the fight against climate change,” regional director in Southern Africa Martha Stein-Sochas said in a statement.
For the period 2017 to 2020, AFD will target projects with a high social impact, including those focusing on inclusive urban development, South Africa’s energy transition and/or providing disadvantaged youth with access to higher education and vocational training.