By Lehlohonolo Lehana.
President Cyril Ramaphosa has appointed former South African Reserve Bank (SARB) deputy governor Daniel Mminele to head a newly established Presidential Climate Finance Task Team, which will lead South Africa’s efforts to mobilise concessional climate finance for its just energy transition.
The appointment follows an $8.5-billion (R132 billion) offer made at COP26 by France, Germany, the UK and the US, as well as the European Union, to support South Africa’s just transition to a low-carbon economy, with a specific focus on the electricity, electric vehicle and green hydrogen sectors.
The Presidency indicated on Tuesday that it expected Mminele to oversee a just transition that advanced the country’s interests, protected vulnerable workers and communities and contributed to investment, growth and sustainable job creation, while supporting the global fight against climate change.
The Political Declaration unveiled on November 2 indicated that the funding, which could take the form of both grants and concessional loans, could be mobilised over the coming three to five years to support the implementation of South Africa’s Nationally Determined Contribution (NDC).
South Africa made a progressive revision to its NDC ahead of COP26, with a new 2030 range of 420- to 350-million tons of carbon dioxide equivalent (Mt CO2-eq), representing a marked improvement on its 2015 pledge of 614 Mt CO2-eq to 398 Mt CO2-eq.
The Presidency said the Presidential Climate Finance Task Team would, together with the Asset and Liability Division of the National Treasury, analyse the offer made with a view to advising Cabinet on its composition, affordability and alignment with the country’s regulatory environment.
It would also engage with partner countries, coordinate relevant government departments, development finance institutions and the private sector, while overseeing the development of financing mechanisms and facilities to enable the flow of international climate finance to support South African just-transition projects.
President @CyrilRamaphosa has appointed Mr Daniel Mminele as head of the newly established Presidential Climate Finance Task Team. In this role, Mr Mminele will lead South Africa’s efforts to mobilise finance for a just transition. https://t.co/yFu1YH7Bql
— Presidency | South Africa ?? (@PresidencyZA) February 8, 2022
Mminele, who has since January 2022 been an independent nonexecutive director and chair-designate at Alexander Forbes Group Holdings, served as CEO of Absa Group until April 30, 2021.
Prior to joining Absa in January 2020, he was a deputy governor of the SARB, where he served two five-year terms from 2009.