South Africa is set to received US $80m loan from German development bank KfW and the Industrial Development Corporation of South Africa (IDC) to develop green economy projects across the country.
KfW executive board member Dr Stefan Peiß who was in attendance to sign the agreement together with newly appointed IDC CEO TP Nchocho, said that the loan facility dubbed the South African facility for Green Growth (SAFGG), is earmarked for local entities to invest in green economy projects that will have a beneficial impact on environment protection and resource efficiency with regard to water resource protection and conservation.
“The facility will also enable local entities to access funding to invest in the green economy, the result of which will be to help mitigate the impact of carbon dioxide emissions” said Dr Stefan Peiß.
“The loan facility from KfW would significantly boost the IDC’s objectives of increasing its investment in renewable energy initiatives and infrastructure related projects. Most importantly, KfW’s support has largely helped us to meet our developmental mandate especially regarding supporting the growth of local [small and medium-sized enterprises] in various sectors of the economy, including agriculture, light manufacturing and tourism,” Nchocho,” CEO TP Nchocho added.Peiß also commended the IDC for its role in providing funding to small and medium-sized companies that were harnessing opportunities in the green economy.
IDC was established in 1940 by an Act of Parliament (Industrial Development Corporation Act, No. 22 of 1940) with the aim of spearheading the development of domestic industrial capacity, especially in view of the shortage of manufactured goods experienced as a result of the disruption of trade between Europe and South Africa during the Second war.