South Africa and Switzerland have concluded a $3.5 million Sustainable Long-Term Finance Facility (SFF), with the Swiss State Secretariat for Economic Affairs (SECO) and the World Bank.
In a statement, the Finance Ministry said the purpose of the facility is to leverage private finance to address South Africa’s Sustainable Development Goals (SDGs) and the climate-linked energy transition.
Ministry spokesperson, Mfuneko Toyana, said the chief aim of the SFF will be to develop sustainable and scalable financing solutions in strategic sectors for development linked to climate change, and will particularly support the implementation of South Africa’s Just Energy Transition.
Finance Minister, Enoch Godongwana, on Tuesday hosted a Swiss delegation, led by the Switzerland’s head of Economic Affairs, Education and Research, Federal Councillor Guy Parmelin.
Toyana said the discussion explored how to deepen long-standing cooperation between the two nations, which culminated in the first SECO South Africa Cooperation Programme launched in 2009.
He said the programme has since expanded to the areas of financial sector development, technology and innovation, skills exchange and climate finance and mitigation.
Godongwana thanked Parmelin and his delegation for their continued support of South Africa’s economic development agenda. In particular, the Minister underlined the importance of collaboration, in relation to preparing South Africa’s policies in addressing physical and transitional risks associated with climate change.
“The big challenge confronting us now is climate change. It has become a reality we cannot ignore. This new facility will go a long way in supporting our efforts to address this challenge.”
The Ministry said the SFF builds on the successful completion of the Capital Markets Strengthening Facility.
“The chief aim of the SFF will be to develop sustainable and scalable financing solutions in strategic sectors for development linked to climate change, and will particularly support the implementation of South Africa’s Just Energy Transition. The Swiss mission to South Africa runs from 5 to 8 July,” said Toyana.