Eskom agrees R6 billion energy deal with France’s AFD

Eskom agrees R6 billion energy deal with France’s AFD

South African electricity company Eskom has signed a framework agreement with Agence Française de Devéloppement (AFD) which will support the development of Eskom’s power infrastructure.

AFD will supply funding towards the development of transmission lines and substations which will provide the basis for future renewable energy facilities.

The multi-tranche agreement represents AFD’s latest contribution to its global objective of committing 50% of its funding to climate change fighting projects.

AFD’s chief executive officer, Rémy Rioux, said: “This new funding to Eskom reiterates the willingness of AFD to be a key financial partner of the South African utility.

“Since the beginning of our engagement with Eskom, almost 10 years ago, we have made the choice to focus our support on targeted areas where we believe a development finance institution like AFD can provide the most value.”

AFD’s first commitment to the state-owned utility company came in 2007, when it provided €100 million towards the Sere wind farm, but the latest funding is the organisation’s first multi-tranche commitment on the continent.