South Africa

South Africa's economy is based around its abundant coal reserves that are cheap and easy to extract. This is why the country ranks among the fifteen largest global emitters of greenhouse gases. There is a growing understanding in South Africa that energy has to be generated in a more environmentally conscious way and used more sparingly. A stable power supply forms the basis of socially oriented economic growth and, as a result, is an important factor in fighting poverty and inequality. South Africa's renewable energy tender programme is considered a successful model for the entire region.

Germany and KfW Development Bank are in a position to offer their unique, internationally recognised expertise when it comes to both energy saving and environmentally friendly generation. The use of innovative technologies and approaches will impact positively on South Africa's carbon footprint and contribute to global environmental protection.

KfW Development Bank on behalf of the German Federal Government, for example, is supporting South Africa in the modernisation of its transmission and distribution system to be able to connect renewable sources of energy to the power grid. Not only will this financing help save up to 5.5 million metric tonnes of CO2 annually; it will also improve the security of supply for the population. Another project entails KfW Development Bank promoting the electrification of up to 30,000 households in the remote, rural areas of the Eastern Cape, which for cost reasons are not able to be connected to the national power grid. These households make a reasonable payment and receive solar roof panels, which can also provide them with power at night using batteries. The solar panels are supplied and operated under a concession scheme.

KfW Development Bank is also involved in a Green Housing Fund in South Africa with funds from the Federal Ministry for Economic Cooperation and Development (fiduciary holding). The purpose is to finance the supply of energy-efficient living space for those with middle and low incomes. On the one hand, this will help improve the tense living situation in South Africa, and on the other hand reduce CO2 emissions as well as the use of resources.

Simple huts without electricity or water, poor sanitation, young people without any education, work or hope: the slums of Soweto and Khayelitsha have little in common with the nearby business centres of Johannesburg and Cape Town. Violence is a major problem here. This is why violence prevention in connection with good governance and improved municipal structures is a priority of German development cooperation in South Africa.

In the townships of the large cities in South Africa, the social and economic consequences of apartheid are still visible today. Once constructed for the black and non-white population in the country, these sprawling slums have been neglected until now. Yet the pressure to improve the poor and discriminating living conditions in these areas is rising.

Amidst the poverty of the townships, crime thrives like in no other country of Africa. In 2014 nearly 18,000 people were murdered in South Africa. To break the spiral of violence at an early stage, KfW Development Bank is supporting the construction of football pitches and facilities, where trained experts work with children and young people. Business and communal centres are developed in a way that economic and social activities can be pursued in a safe environment.

Project example - Preventing violence in poor urban districts  (PDF, 140 KB, non-accessible)

South Africa has more HIV-infected people than any other country in the world: more than six million citizens have contracted the virus. One third of a million South Africans, especially young women and girls, get infected every year. In spite of great progress in therapy each year die about 140,000 people, resulting in more than 2 million orphans so far. The dramatic impact of HIV/ AIDS on the demographic structure comes at a high social and economic cost. Life expectancy of just 56 years is extremely low for an emerging country. Together with the general lack of education, this is one of the main reasons for the huge shortage of skilled workers in all areas, that hinders economic growth as a result. The social system has to take care of a huge amount of orphans and other children in need.

Hence Germany also supports South Africa in the area of HIV prevention. Among the sexually active age-group of the 15 to 49 year-olds, almost one in every five South Africans is infected with HIV, but many are unaware of their condition. Therefore, Germany is co-financing information and testing programmes that should curb the continued spread of the epidemic. In collaboration with non-governmental organisations, the programme reaches out to parts of the population that have not benefited from any government-funded HIV advice. Young people, especially young women, are supported in their personal and professional development. Furthermore community centers are built to take better care of orphans and other children in need in order to give them a better chance for the future and reduces the chance of a HIV-infection.