#COVID19 is an opportunity to re-think the structure of our economies, to build for a fairer, more resilient, & low-carbon future. @IFC_org has partnered with @NedbankCIB to help fund renewable energy projects in #SouthAfrica. Read more: https://t.co/PfwApJSJV5 pic.twitter.com/Ajw27fFxTx

— IFC Africa (@IFCAfrica) December 21, 2020

This partnership aims to enable the energy transition, the reduction of greenhouse gas emissions and the creation of jobs in the renewable energy sector. Under the terms of the bilateral agreement, the IFC will allocate a $200 million loan to the rainbow nation to help expand green finance operations.

The agreement is part of the institution's broader objectives: to develop South Africa's climate finance market and support the government's strategy to transition to a low-carbon economy. The country plans to reduce its emissions by 42% by 2025, and to diversify its electricity production, by 2050 in order to reduce its dependence on coal.

Nedbank is the first South African bank to achieve carbon neutrality and issued the first green bonds on the South African Stock Exchange.

The IFC estimates that the green transition of the energy and sustainable urban infrastructure sectors has an investment potential of $588 billion by 2030 for South Africa.