How to give your retail store a competitive edge

Sarah Moseley, head of vertical solutions and business development, retail and consumer goods at BT, shares her insights on how retail and consumer goods businesses can strategically leverage their digital transformation ambitions to retain consumer loyalty, and empower consumer purchasing decisions and repeat business.

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Climate finance was a key focus at “Africa’s COP”

By Michael Foundethakis, Baker McKenzie’s Global Head of Projects and Trade & Export Finance, and Africa Steering Committee Chair

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Making logistics 4.0 a reality

Liam Connors, Director, digital logistics, BT

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SA’s superfood producer gets financial boost

SA superfood company, Origin of Moringa, has more than tripled its sales year-on-year since its products reached South African supermarket shelves three years ago.

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DBSA and EIB announce EUR400-million SA renewable energy initiative

The Development Bank of Southern Africa and the European Investment Bank announced the launch of a EUR 400 million South Africa renewable energy investment initiative during a signing at COP27. 

  • EIB and DBSA to boost private sector solar and wind investment across South Africa
  • Embedded Generation Investment Programme expected to deliver 1 200 MW green energy generation and replace 3.6 million tonnes of CO2 emissions
  • New renewable energy to create hundreds of jobs across South Africa during construction and operation

For South Africa, like many African countries, climate change is a measurable threat that poses significant social, economic and environmental risks and challenges. There is a dire need for South Africa to balance the acceleration of economic growth and transformation with sustainable infrastructure development in response to climate change.  

As such, DBSA and EIB have come to an agreement on unlocking EUR 400 million for private-sector renewable energy investment in South Africa that will back a new targeted financing program.  

11 November 2022 – Today at COP27 in Sharm El Sheikh, Vice-President Ambroise Fayolle of the European Investment Bank (EIB) and CEO Patrick Dlamini of the Development Bank of Southern Africa (DBSA) formally agreed EIB financing in South Africa that will back a new targeted financing programme to unlock EUR 400 million for private sector renewable energy investment across South Africa.

The EUR 400 million initiative (7.2 billion ZAR equivalent) will be backed by EUR 200 million from the EIB and provide financing for a range of new renewable energy projects across South Africa.

The scheme will help to increase clean energy power generation and contribute to DBSA’s Embedded Generation Investment Programme (EGIP), that is co-financed by the Green Climate Fund. The new initiative is expected to generate an additional 1200 MW of generating capacity and avoid 3.6 million tonnes of CO2 emissions once all the supported projects are operational.

The projects it will finance are expected to create hundreds of new jobs during construction and operation and support local companies.

DBSA CEO Patrick Dlamini commented: “The Development Bank of Southern Africa has a clear goal to increase investment in renewable energy and improve energy security, not only in South Africa but across the African continent. South Africa, like many African countries, is already suffering the effects of climate change. This new investment from the EIB in our Embedded Generation Investment Programme is an important contribution to South Africa’s resilient and sustainable growth.”

EIB Vice-President Ambroise Fayolle added: “As the EU Climate Bank, the EIB is committed to supporting South Africa’s efforts to decarbonise and today’s agreement of the largest ever EIB investment in South Africa follows past support for renewable energy and climate adaptation projects across the country. EIB Global is pleased to build on three decades of partnership with DBSA to boost renewable energy generation which will contribute to energy security and a just transition in South Africa. The EIB is stepping up our efforts to support green energy projects globally, with a special focus on Africa and economies dependent on carbon intensive activities that are vulnerable to the impacts of climate change.”

DBSA Embedded Generation Investment Programme

DBSA’s Embedded Generation Investment Programme (EGIP) supports the development and upscaling of solar photovoltaic and wind renewable energy embedded generation projects, developed by independent power producers operating in South Africa. Embedded generation is the production of electricity from smaller-scale power stations and usually defined as projects that are planned for their own use. EGIP offers a credit support mechanism through the provision of risk capital.

Cheaper solar, onshore wind and energy efficiency

The financing will be available for renewable energy projects – solar photovoltaic and onshore wind energy generation – and potentially also energy efficiency projects promoted by the private sector in South Africa. These projects are expected to provide a reliable source of energy for South Africans at a lower cost than fossil fuel alternatives. The EIB facility complements the Just Energy Transition Partnership with South Africa, which focuses on support to the public sector.

EIB-DBSA partnership

This new operation builds on a long-standing successful partnership between EIB and DBSA going back to 1995, when the EIB first started working in South Africa. Since then, the EIB and DBSA have worked together on 11 projects, including a climate action facility that is currently being implemented, but also supporting municipal infrastructure such as for water, sanitation and education.

EIB at COP27

The EIB has a pavilion in the side event area of the blue zone and is running a series of events on numerous topics. You will find the full agenda here. You are welcome to join our virtual attendee hub to watch the sessions either live or later at your convenience, and network with attendees. With an easy two-step registration process, you will always have the latest information on our agenda.

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Treasury on loan agreement with France and Germany

10 Nov 2022

Bilateral loan agreements AFD and KFW

South Africa, France and Germany have signed loan agreements for the two European nations to each extend €300-million in concessional financing to South Africa to support the country’s just energy transition. The loans are provided by the French and German public development banks, Agence Française de Développement (AFD) and Kreditanstalt für Wiederaufbau (KFW), directly to the National Treasury.

Both loans are sovereign loans that take the form of non-earmarked budget financing that is transferred directly into the National Revenue Fund of South Africa. These loans are in support of the policy and institutional reforms undertaken by the government of South Africa in support of its just energy transition.

The loans are highly concessional as their terms are substantially more generous than what the Government of South Africa would be able to raise in capital markets. These loans are already reflected in South Africa’s gross borrowing requirement (in Table 3.7 of the Medium Term Budget Policy Statement) and well within South Africa’s risk benchmark of foreign debt as percentage of total debt (in Table 7.1 of the Budget Review) The financial terms of the two loans are shown in Table 1.

Table 1. Financial terms of the AFD and KFW loans

The estimated cost for the Government of South Africa to raise an equivalent loan today in the market would be around 8.9%. This estimate is based on a fair value estimation of South Africa’s foreign currency bonds relative to the risk free rate, secondary market activity and historical issue spreads.

Due to South Africa’s high stock of debt and the currently high interest rate environment, replacing market lending with much cheaper concessional loans, allows South Africa to reduce its cost of funding and overall debt burden. By lowering debt service costs, the Government of South Africa creates more fiscal space for critical social and other priorities.

A just energy transition can attract investment, create new industries and jobs, and help South Africa to achieve energy security and climate resilience. South Africa requires more support for its just energy transition given the large scale of the required transition in the context of the current socio-economic challenges and will therefore continue discussions with various multilateral lenders in pursuit of this objective.

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Legarda leads the “Campaign for nature” high-ambition coalition

At no other time in the history of this country have we seen the confluence of high-level reactions to the dual threats of climate change and biodiversity collapse.

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Taking care of business NPO introduces novel way for local manufacturers and distributors to fight waste and support SMME’s

# Businesses can reduce their waste to landfill by donating to innovative NPO that develops entrepreneurs

# Programme enhances triple bottom line and BBBEE scorecard

# Black beneficiaries comprise 100% of Taking Care of Business’ waste reselling and repair programmes

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Mpumalanga holds the key to renewable energy deployment

As renewable energy Independent Power Producers (IPPs) begin expanding their footprint into areas that offer ‘increasingly scarce’ grid availability, the Mpumalanga Province is featuring near the top of the list. Deploying renewable power in this area facilitates faster power distribution and hence it is becoming a priority area for green investment, thereby increasing the country’s clean energy portfolio.

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Global Startup Awards Africa Opens Applications for 2022/23 Season:

Competition to give African startups global visibility and investment opportunities via GIIG Africa Fund

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