French development bank Agence Française de Développment (AFD) have announced that they are extending a €120-million (about R1,5-billion) credit facility to commercial banks in South Africa. The aim of this credit facility is to finance small- to medium-sized projects, which are involved in renewable energy initiatives or energy efficiency initiatives.

The banks that have been identified to be involved are, at present, Nedbank, Absa and the Industrial Development Corporation (IDC). It was a 12-year reimbursable credit facility up to €10-million, with no minimum amount specified.

AFD has developed a way to measure their carbon footprint and this tool would in turn be used to help the projects that AFD becomes involved with.

Reported by Engineering News