South Africa is targeting a debut sovereign green bond as soon as this fiscal year to help raise the R3.7-trillion needed to mitigate the effect of greenhouse gas emissions over the next decade.
“Aspirationally, we would like to issue something within this fiscal year, so we’ve got from now until March 2027,” Wanga Cibi, chief director for liability management at the National Treasury, said in an interview. “If not, definitely in the 2027-28 fiscal year.”
The National Treasury is working to identify eligible projects that will be funded by the inaugural bond, after unveiling its guidelines for sustainable-finance instruments in May, Cibi said. A final decision on the amount and timing of the debut green bond will be made within the framework of the mid-term budget statement, scheduled for October, and will also depend on market conditions, she said.
According to the sustainable-finance framework, funds will be channelled into the nation’s climate transition and infrastructure pipeline, and will fund projects that could include hydrogen manufacturing, hydropower, geothermal electricity and bioenergy.
Money may also be raised for electricity transmission, water security, distribution networks for renewable and low-carbon gases, and the development of energy-efficient technologies for industries and households. Further, the government will use the financing to reskill workers and fund employment programs for coal-sector workers, expand access to public healthcare and education, and support low-income municipal housing developments.
