23.06.2015 – 10:11
KfW supports shift in transport from road to rail in South Africa with EUR 200 million for 240 electric locomotives
Frankfurt am Main (ots)
- Significant contribution to protecting the climate by reducing CO2 emissions - Promoting South Africa's competitiveness - Up to 15.000 jobs created
KfW Development Bank has closed a promotional loan for EUR 200 million (about 2.8bn Rand) with South Africa's state-run logistics company Transnet. The funding contributes (20%) to the financing of the procurement of 240 electric locomotives by the company. The German Federal Government has issued a partial guarantee for the loan. Acting on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), KfW provides the funding to support South Africa's strategy to increase the efficiency and capacity of its freight transport sector, thereby achieving a modal shift from road to rail. This will reduce CO2 emissions and make an important contribution to protecting the climate.
"This project will play a pivotal role in South Africa's economic development and the creation of new jobs. The efficient transportation of goods will contribute significantly to making South Africa's economy more competitive. Up to 15.000 new jobs will be created, the local supplier industry will benefit and technological expertise will be passed on," said Dr Norbert Kloppenburg, Member of KfW Group's Executive Board.
The locomotives are being supplied by Bombardier Transportation, with the bulk of the components being produced and assembly being carried out in South Africa.
On behalf of the German Federal Government, KfW Development Bank has provided around EUR 1 billion to South Africa for projects since 1994 (grant funds of around EUR 180 million, KfW funds of around EUR 820 million), especially in the focal areas of climate and energy, preventing violence and healthcare.
Further information on KfW Development Bank is available at: www.kfw-entwicklungsbank.de.
Original content of: KfW, transmitted by news aktuell