The Industrial Development Corporation (IDC) and the Development Bank of Southern Africa (DBSA) have signed a memorandum of agreement to jointly develop energy projects within South Africa’s special economic zones (SEZs), targeting improved energy security for industrial operations.
The agreement sets out a framework for collaboration between the two development finance institutions (DFIs) to identify, prepare and finance energy projects aimed at providing reliable and cost-effective power to SEZ-based industries.
According to the institutions, the partnership will focus on advancing projects from early-stage development through to bankability, including project preparation, feasibility assessment and funding structuring. The intention is to build a pipeline of investable energy projects aligned with industrial demand within SEZs.
The initiative is positioned to support energy security in key manufacturing zones where consistent electricity supply remains critical to operational continuity and competitiveness. The focus includes enabling access to energy that is affordable and aligned with lower-carbon objectives.
The IDC and DBSA indicated that the collaboration would leverage their respective mandates and financing capabilities to accelerate project development and implementation. This includes mobilising blended finance and supporting project developers in structuring commercially viable energy solutions.
While specific technologies, project sizes and timelines have not yet been disclosed, the agreement signals a coordinated approach by DFIs to address energy constraints in industrial zones through targeted project development.
Further details on project pipelines and implementation timelines are expected to emerge as the partnership progresses.
