South Africa will receive loans worth US$2bn from the US Export-Import Bank to fund renewable energy projects in the country involving US firms
The US bank's president, Fred Hochberg, said, “We will sign an agreement for US$2bn for renewable energy exports from the US to South Africa.
Hochberg added, “South Africa has one of the most forward-reaching energy policies in terms of diversity in power. We have been an active financier of solar and wind energy projects all over the world.”
The 18-year term loan deal will be tied to specific US exports of both goods and services and will ensure diversity of power supplies.
US embassy energy officer Charles Randolph told AFP, “It’s a declaration of intent between Ex-Im Bank and the Industrial Development Corporation of South Africa to consider a financing option for up to US$2bn in credit in support of South Africa’s energy sector.”
South Africa has planned to double its power supply by adding more than 50,000MW of electricity to the country’s grid.
To meet the target, the government has planned to generate 3,725MW of power from “green” renewable energy sources.
