South Africa in Talks With Energy Partners on Loan Guarantees

By Antony Sguazzin

October 25, 2024 at 5:13AM EDT

High voltage electricity transmission towers in Johannesburg, South Africa, on Friday, Aug. 18, 2023. South Africa's electricity minister said he expects to seal a deal with the Chinese government next week that will help solar-power installers in the African nation secure access to panels for projects needed to tackle its energy crisis. Photographer: Michele Spatari/Bloomberg (Michele Spatari/Bloomberg)

(Bloomberg) -- South Africa is in talks with its international climate-finance partners over the provision of guarantees for loans for the construction of energy-related infrastructure.

“We are managing, in particular, issues with our international partners” around guarantees, said Joanne Yawitch, head of the project management unit for the $9.3 billion pact within the South African presidency, at an event in the eastern town of eMalahleni on Friday. “We are on the edge of seeing some of that finance flowing.”

Guarantees have been a sticking point for the rolling out of funds from the so-called Just Energy Transition Partnership because the South African government has been reluctant to add to its contingent liabilities. South Africa’s partners in the pact are France, Germany, the UK, US, European Union, the Netherlands and Denmark.