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.
The Sustainable Development Goals (SDGs) of South Africa and the energy transition linked to climate change are the focus of the facility, according to a statement from the Finance Ministry.
The SFF will primarily support the implementation of South Africa’s Just Energy Transition, according to Mfuneko Toyana, a spokesperson for the ministry, who stated that the main goal of the SFF will be to develop sustainable and scalable financing solutions in strategic sectors for development linked to climate change.
A delegation from Switzerland led by Federal Councillor Guy Parmelin, the country’s head of economic affairs, education, and research, was hosted by the finance minister, Enoch Godongwana, on Tuesday.
According to Toyana, the conversation focused on ways to further the two countries’ long-standing cooperation, which culminated in the 2009 introduction of the first SECO South Africa Cooperation Programme.
The programme, according to him, has subsequently been expanded to include climate finance and mitigation, technology and innovation, skill sharing, and the development of the financial sector.
Godongwana expressed his gratitude to Parmelin and his group for continuing to support South Africa’s vision for economic development. The Minister specifically emphasised the value of cooperation in developing South Africa’s strategies for tackling physical and transitional hazards related to 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.