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south africa climate finance green climate fund TFSC investec proparco
At COP28, Proparco announced a renewed commitment to Investec, a leading South African bank committed to sustainability, by granting it a €500,000 euro technical advisory facility. This new agreement, signed a few months after Proparco provided Investec with an $80 million loan to support its climate investments, marks AFD Group's determination to continue implementing the Transforming Financial Systems for Climate (TFSC) programme in South Africa.

Investec Bank Limited is a leading South African bank with internationally recognised expertise in project finance. The bank has been a pioneer institution in adopting sustainability objectives and integrating them into a comprehensive governance and reporting system. It is also the first bank in South Africa (and one of the first internationally) to have signed up to the Task Force on Climate-related Financial Disclosures (TCFD) in 2019.

The main objective of this technical advisory (TA) grant, which is provided by the Green Climate Fund, is to support Investec's climate strategy, both internally and with its clients. This support aims to include a range of activities, such as capacity building on climate topics, developing processes to better incorporate climate into decision-making, and design of innovative products. The TA also aims to support Investec in identifying new investments with a positive climate impact.

"Proparco is delighted to strengthen its partnership with Investec for the deployment of the TFSC program in South Africa with its partner Investec. The AFD Group, of which Proparco is a part, is strongly committed, alongside the Green Climate Fund, to supporting South Africa in its low-carbon trajectory and climate objectives. This project is also perfectly in line with Proparco's new 2023-2027 strategy, which aims to protect the planet by facilitating investments in climate change mitigation and adaptation. Financial institutions like Investec can play an influential role in channeling funds to the right projects and advising clients on best practices”, says Steven Gardon, Proparco Regional Director for Southern Africa and Indian Ocean.

As Investec, it brings us great pleasure to have the continued support and partnership with Proparco, this investment is testament to the strong and lasting relationship we’ve built with them over the years. Not only does it align with our climate strategy of ensuring that we partner with the stakeholders whose interest lies in accelerating a cleaner, more resilient and inclusive world, but given our positioning in the developed and emerging markets and the urgency that climate change demands, Investec is able to have the opportunity to continue making a meaningful impact in addressing climate change, especially in areas where it is needed the most,” says Melanie Janse Van Vuuren, Investec Global Sustainability Lead.

This project is part of AFD Group’s Transforming Financial Systems for Climate (TFSC) Programme, launched in partnership with the Green Climate Fund, to accelerate the local reorientation of investment flows towards low carbon emission development. Co-financed with funds from the French state, 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.

 

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