Financing Requirements for South Africa’s Net Zero Ambition

Financing requirements for South Africa’s Net Zero Ambition
Image: Getty, Galeanu Mihai

SAIIA hosted a workshop to bring together policy makers and experts to discuss the financing requirements for Africa’s net zero ambition and identify the pathways towards effective investment partnerships.

The COVID-19 pandemic has had a profound economic impact on the world and has highlighted the need for a more sustainable and resilient future. With climate change posing a significant threat to the global economy, the pandemic has created an opportunity for promoting a green recovery through investments in renewable energy, energy efficiency, green infrastructure, and other low-carbon solutions, which can create jobs, stimulate growth, and tackle the climate crisis. For Africa, a region both financially constrained and vulnerable to climate-induced economic shocks, mutually beneficial investment partnerships are required to secure adequate climate financing that is needed to achieve a green economy.

Financing a just transition in Africa will require significant investments to support the shift towards a low-carbon, resilient, and inclusive economy that benefits all people, especially those most affected by the impacts of climate change. However, many African countries have made it clear that huge amount of funds are required for their just transitions and public resources alone will not do it. It is widely recognised that private sector financing can play a crucial role in Africa’s green transition if countries leverage sound financial incentives, public-private partnerships, regulatory frameworks, and innovation support to enhance private sector engagement and ownership of green transitions. International partnerships, such as the African Renewable Energy Initiative, the Africa Adaptation Initiative, and the Green Climate Fund also have a crucial role to play in supporting Africa’s green transition by mobilising resources, sharing knowledge and expertise, building capacity, fostering collaboration and coordination, and promoting policy coherence. These partnerships require strong political will, effective governance, and long-term commitment to achieve their objectives and promote sustainable development in Africa.

The workshop also served as a dissemination event for SAIIA’s work on “South Africa’s Post-COVID Climate Response and the path to its NDC Goals”. The research was conducted by Joseph Upile Matola and Kendra Connock, under the IDRC-funded “COVID-19 Macroeconomic Policy Responses in Africa (CoMPRA)” project.

The workshop aimed to engage stakeholders from the government, private sector, and development finance institutions to discuss opportunities for effective partnerships on climate financing in South Africa and the whole African region.

Keynote speaker:

  • Dr Chantal Naidoo, Rabia Transitions

Presenter:

  • Dr Joseph Matola, SAIIA

Respondent:

  • Mr Dipak Patel, Presidential Climate Commission

Panellists:

  • Ms Reitumetse Molotsoane, National Business Initiative
  • Dr Candice Stevens, Africa’s Sustainable Finance Coalition
  • Ms Saphira Patel, British International Investment
  • Mr Kuhle Duma, Anglo American
  • Ms Bridget Boulle, Climate Bonds
  • Mr Joseph Cordonnier, OECD

This was a closed roundtable; therefore no recording or event report will be published.

4 May 2023