NDB’s Energy Investments Add 1,600MW to South Africa’s Grid, New Evaluation Finds
A new independent evaluation has found that the New Development Bank (NDB) – commonly known as “The BRICS bank” – has played a significant role in expanding South Africa’s renewable energy capacity over the past decade, helping the country reduce its reliance on fossil fuels and make progress toward its climate commitments.
The report — a thematic assessment of NDB’s financing and activities in South Africa’s energy sector — was presented in Johannesburg this week by the bank’s Independent Evaluation Office (IEO). It shows that since 2016 NDB has channelled USD 972.8 million into South Africa’s energy infrastructure, contributing an estimated 1,600 MW of new installed capacity and supplying roughly 7,500 GWh of electricity a year.
According to the evaluation team, these investments have also helped curb South Africa’s emissions profile. The projects financed to date are estimated to reduce carbon dioxide emissions by around 7.2 million tonnes annually, representing nearly 12% of the reductions required for the country to meet its Nationally Determined Contributions.
While the findings highlight the scale and impact of NDB’s support, the evaluation also points to areas where the bank could deepen its contribution — including expanding its technical assistance, strengthening knowledge management, and participating more actively in South Africa’s emerging credit-guarantee initiatives.
Government and Experts Review Findings
The report was discussed at an Independent Evaluation Stakeholders’ Workshop attended by senior South African officials, including Advocate Melanchton Makobe, the Acting Director-General of the Department of Planning, Monitoring and Evaluation (DPME). Development partners and evaluation specialists from across the country also took part.
Participants reviewed the evaluation’s findings, debated lessons for future energy-sector operations, and examined how NDB and its partners could strengthen their engagement in the next phase of South Africa’s energy transition. Several attendees noted that the evaluation provides timely evidence of how multilateral financing can accelerate diversification of the energy mix and support the move away from coal dependency.
Deepening Collaboration on Evaluation
The workshop coincided with the signing of a new memorandum of understanding between the IEO and the DPME. The agreement, concluded on the sidelines of the DPME’s National Evaluation Seminar, formalises cooperation between the two institutions in areas such as peer review of evaluations, shared methodologies, training, and knowledge exchange.
Mr Ashwani K. Muthoo, Director General of the IEO, said the partnership reflects South Africa’s strong track record in evaluation and evidence-based policymaking.
“South Africa has built one of the most dynamic evaluation ecosystems in the Global South,” Muthoo noted. “This partnership will be fundamental as we embark on next year’s country portfolio evaluation of NDB’s activities in South Africa, ensuring that local insights and understanding of the development context enrich every stage of the work.”
Supporting a Low-Carbon Growth Path
By embedding evaluation more deeply into energy and infrastructure projects, both institutions aim to strengthen results measurement, improve learning, and broaden the exchange of practical experience. The evaluation office and the DPME say the collaboration will ultimately support South Africa’s broader sustainable and inclusive-growth agenda as the country accelerates efforts to modernise its energy system.
