Proparco and Investec Bank Limited are collaborating to implement the Transforming Financial Systems for Climate (TFSC) programme in South Africa. The package comprises a senior credit facility of $80 million and a technical assistance programme. TFSC is a global facility worth $650 million, covering 17 countries.

Within a South African context and in line with AFD Group's broader objectives, TFSC aims to support South Africa's pathway to a low-carbon economy and climate resilient society. South Africa has set an ambitious goal of reducing carbon emissions by 42% by 2025 and diversifying its electricity production away from coal by 2050. To participate in this goal, Proparco, on behalf of AFD Group, just provided a $80 million climate finance-dedicated credit facility to Investec.

After the collaboration with FirstRand Bank Limited, announced in October 2022, marking the launch of AFD Group's TFSC programme in South Africa, Investec is now the second bank to have joined the programme. This transaction aims to support Investec in its efforts to expand climate-related financing in South Africa, thanks to a long term senior credit facility of $80 million, complemented by a Technical Assistance package under the TFSC programme. This operation is also Investec's first cooperation with a development finance institution such as Proparco.

The transaction will contribute to South Africa's transition to a low-carbon economy by enabling Investec to finance ambitious projects aligned with the highest climate finance standards both in terms of mitigation and adaptation. Positive impacts are expected in terms of energy use reduction, increase of renewable energy power supply, CO2 emission avoidance, as well as in terms of more climate resilient infrastructure and buildings being made available across South Africa, thanks to the TFSC programme.