Green Energy Gets a Boost via African Development Bank Loan
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On 24 July 2025, the National Treasury announced a major step forward in South Africa’s Just Energy Transition (JET), a US$474.6 million Loan from the African Development Bank (AfDB). This funding is part of a broader effort supported by various international partners to reshape how South Africa powers its economy. This concessional finance with highly favourable terms helps South Africa meet its foreign currency obligations while advancing a greener, more resilient economy.
What is the Just Energy Transition (JET)?
The Just Energy Transition is about shifting South Africa’s energy system away from fossil fuels toward cleaner, renewable energy sources — but doing so in a way that’s fair and inclusive. It means:
Protecting workers and communities in carbon-intensive industries
Creating new green jobs and economic opportunities
Ensuring energy security and affordability for all South Africans
In simple terms, it’s not just about going green; it’s about doing it in a way that supports people, growth, and stability.
What Does the Loan Cover?
This is the third Development Policy Operation backed by the AfDB and other partners, aimed at:
Improving energy security
Accelerating decarbonisation
Supporting structural reforms in the energy and transport sectors
Enhancing infrastructure governance.
What It Means for Businesses and Accountants
For businesses: The energy transition opens up new markets in renewable energy, transport infrastructure, and green innovation. It also signals growing compliance expectations around emissions, ESG, and sustainability disclosures.
For accountants: Expect more demand for ESG reporting, assurance on climate finance, and advising clients on green tax incentives, energy efficiency investments, and sustainability-linked funding.
The Bottom line?
Green growth isn’t just government policy — it’s a business reality. Accountants and advisors need to position themselves as experts in sustainable finance and transition risk planning.
Read more in the Media Statement on the National Treasury’s website.
