South Africa - AFD

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South Africa, one of Africa’s largest economies, is rich in minerals and has a developed financial sector but faces high socioeconomic disparities. As a coal-dependent economy, it is a major emitter of greenhouse gases, and yet is also highly vulnerable to climate change. Through its Just Energy Transition Investment Plan (JET IP), the government is pursuing a low-carbon, more inclusive development path, with the support of international partners. France’s €1 billion contribution to the JET is channeled through AFD, which focuses on strengthening climate resilience and reducing multidimensional inequalities.

Context

South Africa is one of the largest and most diversified economies in Africa, with a well-established financial sector and significant natural resources. But the country faces sluggish growth and high unemployment, particularly among young people. Deep social and economic inequalities persist, making South Africa one of the most unequal countries in the world, with limited social mobility. The country’s energy and infrastructure systems are also under strain.

AFD has been active in South Africa since 1994, mobilizing over €4 billion in investments across sectors such as renewable and conventional energy, transport, water and sanitation, social infrastructure, biodiversity conservation, and urban development. Through innovative financing solutions, technical assistance, and partnerships with government agencies, local authorities, and civil society, AFD aims to support the development of a low-carbon economy while addressing economic, social, and territorial inequalities.

In recent years, AFD has placed particular emphasis on promoting a just transition, aligning with South Africa’s national priorities to reduce greenhouse gas emissions while ensuring that the shift away from coal does not disproportionately disadvantage vulnerable populations. Focusing on social justice is key because of its significant potential to generate opportunities for local job creation as well as a means to redress socioeconomic inequality and injustices. 

AFD’s interventions include large-scale public policy loans, investments in renewable energy, and the promotion of economic reconversion programs, as well as data-driven policy research to design targeted social protection measures and ensure equitable outcomes, including gender and youth inclusion.

AFD's South Africa office is directly attached to the Southern Africa Regional Office.

AFD and South Africa: a sustainable and innovative partnership

By collaborating with key local stakeholders, including public and private actors, academia, and civil society, the AFD Group aims to promote a just transition and reduce multidimensional inequalities.

Supporting the implementation of a Just Energy Transition (JET)

Through the implementation of France's contribution to the Just Energy Transition Partnership (JET-P) (€1 billion by 2026), AFD will support South African authorities in achieving a just low-carbon transition, with particular attention paid to the most disadvantaged and vulnerable groups. While continuing existing cooperation in the transport and energy sectors, AFD will specifically aim to build on its proven expertise in the “just” dimensions of energy transition. AFD will continue to be a strong advocate for social justice in the energy transition because of its significant potential to generate opportunities for local job creation as well as a means to redress for past socioeconomic inequality and injustices. In this context, AFD will leverage French experience through peer exchanges and promote ongoing research in partnership with many South African institutions.

Powering South Africa's Just Energy Transition

Supporting the reduction of poverty and multidimensional inequalities

AFD aims to address inequalities (economic, social, spatial) beyond those potentially created by the energy transition. AFD’s resources will thus be mobilized to stimulate an inclusive economy, promote equitable access to basic services, strengthen governance of public enterprises, protect and restore biodiversity, manage water resources and ensure reliable access for all, urban planning, create social housing, provide quality and affordable education, promote public transport, enhance the resilience of the healthcare system, support social protection measures and job creation, and promote gender equality.

In the field

Below, find the country's projects, news, publications, and contact details in one click.

Projects

Supporting the just dimensions of South Africa’s Just Energy Transition

Just Energy Transition (JET)

Ongoing

2024 - 2026

South Africa

Financing amount : € 400 000 000

Support the City of Cape Town with inclusive and resilient urban development

Sustainable Cities

Ongoing

2023 - 2038

South Africa

Financing amount : € 100 000 000

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News & Press Releases

AFD signs cooperation agreement to enhance South Africa’s power grid

How is public development assistance perceived in Africa?

• Africa

• Fighting Inequalities

Published on May 10, 2026

Transnet and AFD sign major agreement to decarbonise South Africa’s freight sector

View more news

Publications & Media

AFD Group's flagship project in the Indo...

Institutional document

Published on May 6, 2025

AFD Group in South Africa

Institutional document

Published on November 5, 2024

AFD Group and Europe in Southern Africa

Institutional document

Published on February 28, 2022

Brochure - Extension of the Research Fac...

Institutional document

Published on February 13, 2022

View more resources

Key figures

• 189 projects have been signed since the opening of the AFD Group office in Johannesburg, of which 102 by AFD and 87 by Proparco.
• 4.2 billion euros committed, of which 3 bn AFD and 1.2 bn Proparco.

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