Pacific Investment Management Company (PIMCO) would lend the Development Bank of Southern Africa (DBSA) $210 million for green energy development, according to the United Nations Economic Commission for Africa (UNECA). The loan is the first African green energy contract in a UN programme, and it aims to boost renewable energy capacity across Africa.

The funds will be utilised to refinance renewable energy generating and transmission projects and add to the Bank’s liquidity pool for future green power generation projects.

South Africa is a founding sponsor of the Sustainable Development Goals (SDG7) programme. The program was launched in February 2020 to deploy private capital in Africa to support the development and ensure that everyone has access to affordable, reliable, sustainable, and modern renewable energy.

Commenting on the deal, South Africa’s Finance Minister who also served as the chairperson of the DBSA during the early stages of this deal, Enoch Godongwana, said: “We are gratified to help initiate this program for the UNECA and the continent and appreciate the endorsement from private international financial institutions such as PIMCO, which are not only engaged in the South African economy but see the particular opportunity in supporting our clean energy transition.”

Also commenting, the Under-Secretary of the UN and Executive Secretary of UNECA, Dr Vera Songwe, said: “The success belongs to South Africa and the DBSA for their single-mindedness in recognizing the value of attracting foreign private debt investment into the energy sector, and to PIMCO for committing to the green energy transition on the African continent.”

“This first agreement for South Africa is an important signal to the many other countries interested in the SDG7 Program who recognize the value of attracting private capital to support economic growth and green industrialization.”

“We look forward to concluding further transactions as part of the program in the very near future.”