The Strategic Role of the New Development Bank in Addressing South Africa’s Energy Constraints

With the objective of accelerating South Africa’s transition toward clean energy and reducing dependence on fossil fuels, the New Development Bank (NDB) has played a pivotal role in strengthening the country’s renewable energy capacity through substantial investments in the energy sector in recent years.

Since 2016, the NDB has invested approximately USD 972.8 million in South Africa’s energy projects, resulting in an increase of nearly 1,600 megawatts of installed power capacity and the annual generation of about 7,500 gigawatt-hours of electricity.

These investments have also contributed to an annual reduction of around 7.2 million tons of carbon dioxide emissions, accounting for nearly 12 percent of the emissions reduction required for South Africa to meet its Nationally Determined Contributions (NDCs) under the Paris Agreement.

A report by the Independent Evaluation Office (IEO) of the New Development Bank indicates that the bank’s support—particularly in renewable energy—has improved energy security, diversified the electricity generation mix, and facilitated progress toward a low-carbon economy.

At the same time, the IEO and South Africa’s Department of Planning, Monitoring and Evaluation (DPME) agreed to establish formal cooperation. This collaboration includes joint training programs, the exchange of evaluation methodologies and best practices, and direct engagement between experts from both institutions.

The primary objective of this partnership is to enhance the quality of development project and policy evaluations, as well as to leverage shared knowledge and experience to improve outcomes and increase the overall impact of energy initiatives.

South Africa’s experience demonstrates how targeted investment by the NDB can simultaneously support the deployment of advanced energy technologies, reduce carbon emissions, and strengthen energy resilience in emerging economies.