AFD and KfW Strengthen Partnership with MoU to Support South Africa’s Just Energy Transition at #FiCS2025

In a landmark move underscoring the importance of international cooperation in a fragmented world, the Agence Française de Développement (AFD) and KfW signed a Memorandum of Understanding (MoU) during the #FiCS2025 forum. This agreement marks a significant step in deepening their collaboration to support South Africa’s Just Energy Transition Partnership (JETP), with a special focus on empowering municipalities.

The signing ceremony was attended by high-profile representatives, including Thani Mohamed-Soilihi, the French Minister for International Partnership, and the CEOs of both institutions, Rémy Rioux (AFD) and Stefan B. Wintels (KfW). The MoU was formally signed by the two Country Directors for South Africa, Audrey Rojkoff (AFD) and Cornelia Tittmann (KfW), in the presence of embassy representatives David Martinon (France) and Tanja Werheit (Germany), who emphasized the critical role of trust and cooperation in achieving shared goals.

A Shared Vision for South Africa’s Future

The MoU focuses on supporting South Africa’s ambitious goals under the Just Energy Transition Partnership (JETP), a global initiative aimed at transitioning from coal-dependent energy systems to renewable and sustainable energy sources. This transition is not only vital for combating climate change but also for ensuring economic and social equity, particularly in communities reliant on traditional energy sectors.

A key aspect of the agreement is its emphasis on municipalities, which play a crucial role in implementing energy transition projects at the local level. By strengthening municipal capacities, AFD and KfW aim to ensure that the benefits of the energy transition are felt across all levels of society, particularly in underserved areas.

Why This Partnership Matters

In a world increasingly marked by geopolitical fragmentation, partnerships like the one between AFD and KfW demonstrate the power of collaboration in addressing global challenges. Both institutions bring unique expertise and resources to the table:

• AFD, France’s development agency, has a strong track record in financing sustainable development projects worldwide.
• KfW, Germany’s development bank, is renowned for its innovative financing solutions and technical expertise in renewable energy.

Together, they are well-positioned to support South Africa’s transition to a low-carbon economy while ensuring that the process is inclusive and just.

Statements from Key Stakeholders

Thani Mohamed-Soilihi,

French Minister for International Partnership:
“This MoU reflects our shared commitment to a sustainable and just energy transition. By working together, we can ensure that no one is left behind in South Africa’s journey toward a greener future.”

Rémy Rioux, CEO of AFD:

“Our partnership with KfW is a testament to the strength of international cooperation. Together, we will support South Africa in achieving its climate goals while fostering economic and social development.”

Stefan B. Wintels, CEO of KfW:

“The energy transition is a global challenge that requires collective action. This MoU underscores our commitment to supporting South Africa’s municipalities in building a sustainable and resilient future.”

Looking Ahead

The signing of this MoU is a significant milestone in the ongoing efforts to support South Africa’s energy transition. By combining their strengths, AFD and KfW are not only contributing to global climate action but also setting an example for how international partnerships can drive meaningful change.

As the world faces increasing environmental and economic challenges, initiatives like this remind us that collaboration and trust are more important than ever. With the backing of France, Germany, and the European Union, South Africa’s journey toward a just energy transition is poised to become a model for other nations to follow.

Conclusion

The partnership between AFD and KfW represents a beacon of hope in challenging times. By standing together, these institutions are helping to build a more sustainable and equitable future for South Africa and the world. Stay tuned for more updates on this groundbreaking collaboration as it unfolds!