The NDB loan was in the form of a two-step loan of up to USD 300 million to DBSA, which in turn was on-lent to its identified subprojects, including the wind, solar, and biomass energy sectors.

The objective of the Project was to facilitate investments in renewable energy that would contribute to power generation mix and reduction in CO2 emissions in South Africa, in line with the South African Government’s Integrated Resource Plan 2010 and its target of reducing greenhouse gas emissions as articulated in the National Development Plan 2030.

The Project was implemented between 2019 and 2024. Suppliers for the Project were selected through competitive and transparent bidding process.

The Project achieved substantial developmental outcomes through its subprojects, notably by delivering significant environmental and social benefits. These include a reduction in carbon dioxide emissions, enhanced generation capacity from renewable energy sources, and improved overall efficiency within South Africa’s energy sector. Additionally, the Project played a critical role in catalyzing private sector investment and expanding the availability of long-term financing for energy projects in the country. In line with the NDB Environment and Social Framework (ESF), the Project was classified as “FI” due to financing being channeled through a financial intermediary. Individual subprojects were predominantly categorized as “Category B” in accordance with the NDB ESF. NDB retained the authority to review the environmental and social categorization assigned by the DBSA; any subproject classified as “Category A” required explicit approval from NDB. Furthermore, all supported subprojects were required to adhere strictly to South Africa’s applicable environmental and social regulations, as well as to comply with the relevant standards and provisions established under the NDB ESF.