Johannesburg, 29 November 2023: Proparco’s far-reaching Transforming Financial Systems for Climate (TFSC) programme is delivering significant impact in a range of green initiatives implemented by leading South African investment banks. On the eve of COP28, this programme highlights the AFD Group’s commitment to responding to the challenges of climate change.
Proparco launched its TFSC programme in 2018 in partnership with the Green Climate Fund, to boost investment in low carbon emission development in 17 developing countries including South Africa. Steven Gardon, Regional Director of Proparco in Southern Africa, says: “South Africa is a priority region for TFSC given the current high-carbon intensity of its economy and the country’s sensitivity to climate change impacts. The South African government has made fighting climate change a priority and is working towards developing renewable energy resources with an emphasis on creating jobs and reducing poverty and inequality. The TFSC programme aims to support these efforts.”
In 2022, in a bid to scale up climate finance in South Africa, Proparco provided credit facilities worth $100 million and $80 million to FirstRand Bank and Investec, respectively. The banks distribute the funds as climate finance loans to qualifying clients.
The TFSC programme includes a technical advisory component, co-financed by French government funds. This facility seeks to integrate climate change considerations into participating banks’ operations and strategies, remove financial and technical barriers to project development, and minimise risk by building capacity in the fields of climate finance and sustainable banking.
“Climate change is accelerating extreme weather events and driving risk to economies and societies across the globe. Proparco and the AFD Group are committed to supporting our partners to meet these challenges by providing financing and expertise wherever we can. We are investing knowledge, technical assistance and funding through the TFSC to address the financial and technical barriers faced by participating banks in financing relevant local projects”, says Gardon.
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About Proparco:
Proparco is the private-sector arm of the French Development Agency (Agence Française de Développement – AFD). Proparco has been promoting sustainable economic, social and environmental development for over 40 years and has been active in South Africa since 1994. It provides funding and support to businesses in Africa, Asia, Latin America and the Middle East. Its action focuses on key development sectors, particularly healthcare, education, renewable energy, agribusiness and financial institutions. In addition to TFSC, Proparco invests in key development areas such as affordable housing, renewable energy, low-carbon and efficient energy generation, and adaptation to climate change such as agro-forestry and water management projects.
Proparco’s operations aim to strengthen the private sector’s contribution to the Sustainable Development Goals (SDGs). To this end, Proparco finances companies creating jobs and decent incomes, providing essential goods and services and combating climate change.
For more information, visit: www.proparco.fr.
Press contact:
Mantis Communications
Kerry Simpson
Tel: 079 438 3252
Email: [email protected]
