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DBSA and AFD Partner to Drive Social Innovation and Community Empowerment in South Africa’s Just Energy Transition
8 November – Johannesburg - The Development Bank of Southern Africa (DBSA) and Agence Française de Développement (AFD) are continuing a 30-year partnership with a contribution of €200 000, aimed at expanding DBSA’s Development Labs Programme (DLABs) to support South Africa’s Just Energy Transition in Mpumalanga Province. This collaboration is part of a strategic effort to foster sustainable growth, youth empowerment, and economic resilience across the nation.
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In 2019, DBSA launched the DLAB Programme, moving into implementation in 2020 as a pilot across seven of South Africa’s nine provinces. These DLAB precincts provide vital hubs for skills development, training, and entrepreneurial support, enabling over 5,000 young people to develop job-ready skills and business expertise while actively contributing to their communities. Now, with AFD’s additional funding and technical support, DBSA will conduct feasibility studies to expand DLABs into Mpumalanga’s Nkangala District, a region crucial to South Africa’s energy economy.
The Nkangala District is home to most of South Africa’s coal-fired power stations and coal mines, making it a vital economic zone but also one at risk of significant economic impact as coal assets are decommissioned. "The DLAB Programme as a platform and vehicle for collaboration across sectors to drive development and economic participation, is in a unique position to support South Africa’s Just Transition Plan," said Boitumelo Mosako, DBSA’s Chief Executive Officer. AFD’s funding will assist DBSA to explore the potential of establishing DLAB precincts that focus on retraining and upskilling local youth for careers in emerging sectors like renewable energy, agriculture, eco-tourism, and sustainable manufacturing.
DLAB precincts in Nkangala are expected to create thousands of jobs, contributing to the national green economy and empowering approximately 10,000 young South Africans with the skills they need to thrive in a transitioning energy landscape. This programme not only aims to future-proof the economy but also to position South Africa as a leader in Africa’s Just Energy Transition, demonstrating how social innovation and sustainable development can be leveraged for inclusive prosperity. “Through this impactful collaboration, DBSA and AFD are fostering a sustainable legacy, building a bridge for youth to lead in economic participation and innovation across the continent,” said Rémy Rioux, AFD Chief Executive Officer.