Development Bank Southern Africa starts Climate Finance Facility

The Development Bank of Southern Africa said it was awarded $55.6 million of funding from a unit of the United Nations to set up a R2 billion ($140 million) Climate Finance Facility.

The money was made available from the Green Climate Fund, a mechanism of the United Nations Framework Convention on Climate Change, to support developing countries in responding to climate change, the lender said in an emailed statement.

The DBSA will provide R650 million and is “in advanced discussions with a local institution for the balance,” it said.

The Climate Finance Facility will focus on infrastructure projects and businesses that mitigate or adapt to climate change. Besides South Africa, the facility will also extend financing to the common monetary area, which includes Namibia, Swaziland and Lesotho.