The African Development Bank (AfDB), through its African Private Sector Assistance Fund (FAPA), has granted a $1 million donation to the National Business Initiative (NBI) to support the development of green skills in South Africa.
A Targeted Program for Youth Employment in the Green Economy
The first phase of the program, financed by this donation, includes feasibility studies to create dedicated skill development zones and capacity building for the public technical and vocational education system. This initiative addresses a major challenge: the youth unemployment rate in South Africa stands at 46.1% for those aged 15-34 in the first quarter of 2025, according to StatisticsSA.
Kennedy Mbekeani, AfDB’s Director General for Southern Africa, emphasizes that this funding will promote inclusive policies, strengthen SMEs, and create employment opportunities for youth in the green economy.
Broader Support for South Africa’s Energy Transition
This donation is part of a larger AfDB effort to support South Africa’s energy transition. Recently, the AfDB approved a $474.6 million loan for the Infrastructure Governance and Green Growth Program (IGGGP), aimed at accelerating the shift toward a sustainable, low-carbon economy. This financing complements other international support, including 1.5 billion USD from the World Bank and 500 million EUR from the German development bank KfW, highlighting the global importance of South Africa’s energy transition.
An Integrated Strategy for a Just and Inclusive Transition
The AfDB emphasizes a just energy transition that benefits all, especially youth and women. Within this framework, 70% of the Social Employment Fund beneficiaries will be women, and training programs focus on preparing young people for the green economy. The Bank also commits to strengthening social protections for vulnerable populations, including informal workers and communities dependent on fossil fuels, to prevent job losses and worsening poverty.
Outlook and Challenges
South Africa, heavily reliant on coal, exemplifies the challenges of a balanced energy transition. Through its investments and partnerships, the AfDB aims to support economic stability while promoting green growth and sustainable job creation. This financial and technical support is crucial for the country to meet its climate commitments and achieve ambitious goals such as carbon neutrality in certain sectors by 2050.
This mobilization underscores the importance of training and inclusion in the energy transition—key elements for a sustainable and prosperous future in South Africa.
