South Africa Landscape 2025

In 2022/2023, South Africa’s climate finance reached an annual average of ZAR 188.3 billion.

Meeting NDC and net-zero targets will require at least two to threefold increase in current climate finance, with estimated needs reaching up to ZAR 499 billion per year.

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This annual average of ZAR 188.3 reflects continued international support, which accounted for 39.1% of total climate finance.

Strong domestic market participation has been the main contributor to South African climate finance, with private sector supporting the transition.

Banks, investors, and corporations provided the majority (81.9%) of domestic flows, and half of climate finance overall.

Explore the 2022/2023 climate finance flows in South Africa further:

Recommendation

IMMEDIATE ACTIONS: Unlock near-term investment by enhancing data transparency, policy certainty, and financing mechanisms.

1	Enhance climate finance data transparency and tracking.
2	Provide clear and stable policy signals for climate investment.
3	Expand concessional and blended finance for adaptation and just transition.
4	Deploy risk mitigation and management instruments to mobilise private capital.
5	Strengthen project preparation, pipelines and institutional capacity.

STRUCTURAL REFORMS: Embed climate priorities into South Africa’s financial architecture and economic planning.

6	Institutionalise climate finance governance and coordination.
7	Empower municipalities and cities as climate finance actors.
8	Deepen domestic financial markets for climate investment.
9	Rewire infrastructure systems to enable transition technologies.
10	Leverage international finance and partnerships.

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