*** Photo: IDC Chief Operations Officer (COO) Joanne Bate ***
By Tshepo Ramodibe
Johannesburg – The Industrial Development Corporation of South Africa Limited (IDC) and KfW Development Bank, in respect to mandates of their respective Governments have achieved yet another milestone in their long-standing partnership.
The duo have signed an MOU that will lead to strengthening of cooperation between the two funding entities – more so as the IDC seeks to ramp up its financial support to the development of South Africa’s green hydrogen economy. As part of this agreement, the parties will conclude an agreement which will enable the IDC to manage €23 million in grant funds from the German Government.
The IDC is playing a leading role in the development of a Green Hydrogen Commercialisation Strategy (GHCS) for South Africa through its chairmanship and secretariat of the Green Hydrogen Panel. The sourcing and structuring of different financing instruments namely grants, concessional debt and price subsidies also known as contract for differences from various financing entities is critical to the success of the GHCS. These include both local and International Development Finance Institutions (DFIs).
This grant facility is a game changer especially given the exciting industrialisation opportunity presented by the Green Hydrogen Economy. Collaboration between different Development Finance Institutions in providing blended finance solutions is a key in the development of catalytic green hydrogen projects,“ said IDC Chief Operations Officer (COO) Joanne Bate.
KfW representative Babette Stein von Kamienski, Head of Division Infrastructure Southern Africacommended the IDC for its role and government efforts in helping South Africa adopt sustainable but Just Energy Transition. “KfW will continue to support the IDC in its mandate to promote the market development of a green hydrogen economy in South Africa. We hope this facility will help the IDC to address the funding gap for projects that have identified opportunities in SA’s decabonisation efforts but are constrained by funding challenges, “said Babette Stein von Kamienski.
About KfW, Frankfurt am Main (KfW
KfW was founded in 1948 and is headquartered in Frankfurt am Main, Germany. It offers financing services for purchase and construction of properties and business start-ups, loans for renewable energy projects, for research and development projects and financing to German municipalities. The development of KfW Group has been closely connected to the economic development of the Federal Republic of Germany. Since its founding in 1948 and per its statutory mission, KfW has been supporting change and encouraging forward-looking ideas – in Germany, Europe and throughout the world.
About Industrial Development Corporation of South Africa (IDC)
The IDC was established in 1940 by an Act of Parliament (Industrial Development Corporation Act, No. 22 of 1940). For more than 80 years, the corporation has been instrumental in implementing South Africa’s industrial development policy by establishing industries that have since become cornerstones of the country’s manufacturing sector. These include the petrol-chemicals, mining, and mineral beneficiation industries. IDC’s priorities and focus areas have evolved over the years in line with the policy direction of its shareholder, the South African government. The Corporation continues to play a critical role in developing South Africa and the continent’s industrial capacity and, in so doing helping to facilitate the creation of job opportunities.
IDC Head of Corporate Affairs
Tel : 011 269 300
For more contact
Cell : 073 535 0300
Email : Chimwemwem@idc.co.za