Janet Yellen, United States Secretary of the Treasury, and Enoch Godongwana, South African Minister of Finance, have discussed U.S. assistance for South Africa’s Just Energy Transition.
Yellen travels South Africa for discussions with Ramaphosa and Godongwana.
The United States was thrilled to become a partner in South Africa’s Just Energy Transition Partnership, which is the first of its kind in the world.
The nation aims to reduce its reliance on coal to 59% of its power output by 2030 and to achieve carbon neutrality by 2050.
This alliance is South Africa’s first significant step toward extending power availability and dependability and establishing a low-carbon, climate-resilient economy.
The United States has pledged $8.5 billion in loans to help finance South Africa’s energy transition.
Minister Godongwana thanked the United States for their support of South Africa’s energy transition. He explains that it comes at a crucial moment because the nation is experiencing energy constraints.
He noted that industrialized nations could do more in this regard, particularly by ensuring that the financial assistance contains a significantly bigger proportion of grant funds.
Minister Godongwana asserts that the “Special Needs and Circumstances” of Africa must be acknowledged internationally.
Minister Godongwana also requested Secretary Yellen to back South Africa’s initiative to overhaul international financial institutions and multilateral development banks.
This will involve a greater engagement of developing and middle-income nations.
“Strengthening the development results of these institutions and the financing they provide would also be an essential area of cooperation,”
He stated that he will continue to campaign for the Common Framework for debt treatment implementation.
The worldwide financial crisis triggered by the COVID-19 epidemic, according to Godongwana, forced a number of poor and rising economies into debt hardship.
Moreover, he emphasized the necessity of these reforms and the need for swift debt resolution methods.
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