The OECD, through the CEFIM team, has maintained a long-standing relationship with South Africa on mobilising investment and financing for the country’s transition to a low-carbon economy. Since May 2025, the OECD has worked with South Africa’s Department for Forestry, Fisheries and the Environment (DFFE) to support South Africa’s just energy transition, focusing on Overcoming financial and capacity barriers faced by green small-scale enterprises. This work complements the OECD's earlier implementation of the Framework for Industry's Net-Zero Transition in South Africa, which identified policy and financing solutions to support the decarbonisation of the iron and steel sector and strengthen enabling conditions for low-emissions industrial development.
Clean Energy Finance and Investment Mobilisation in South Africa
The OECD Clean Energy Finance and Investment Mobilisation programme supports South Africa in its efforts to mobilise private finance and investment for clean energy, including in renewable energy, energy efficiency, clean hydrogen and industry decarbonisation.
Our work in South Africa
Overcoming financial and capacity barriers for green small enterprises
This project supports the South African Government’s efforts toward a just energy transition, with a particular focus on coal-dependent communities in Mpumalanga and targeted areas in the Western Cape. Building on the findings of a Needs Assessment Report, to be published at COP31 in November 2026, the OECD has now entered the implementation and knowledge-sharing phase of the project to improve access to financing and strengthen the broader ecosystem for green small-scale enterprises. Through collaboration with national and local partners, the OECD is implementing a roadmap of priority actions.
Running until the end of 2027, the project comprises three phases: (i) an analytical phase aimed at establishing a needs assessment and identifying priority areas for action through stakeholder consultations and surveys, (ii) a knowledge-sharing phase to disseminate findings and promote peer learning, and (iii) an implementation phase to support the uptake of recommendations. The first phase was funded with support from the Governments of Canada and Denmark, while the knowledge-sharing and implementation phases are funded by Denmark.
Participate in our surveys:
Jointly organised by South Africa's Department of Forestry, Fisheries and the Environment (DFFE) and the Organisation for Economic Co-operation and Development (OECD), in close collaboration with the National Business Initiative (NBI), the event will feature the high-level launch of the joint DFFE-OECD report, Overcoming Financial and Capacity Barriers to Empower Small-Scale Enterprises in South Africa: Focus on Renewable, Reliable, Secure and Affordable Energy in Mpumalanga and the Western Cape.
The report validation meetings in Pretoria and eMalahleni, Mpumalanga, provided an opportunity to discuss key findings and recommendations with stakeholders, as well as to present the roadmap and proposed actions through to 2027. In parallel, the team held two initial knowledge-sharing sessions: one with financial institutions to help unlock access to finance for green small-scale enterprises, and another focused on advancing agrivoltaics training and financial solutions in Mpumalanga.
The thematic roundtable meetings brought together key stakeholders who are closely involved in the project and experts. They discussed preliminary findings, survey results and action proposals that will inform the Needs Assessment Report. These discussions helped shape the way forward for Phases II and III, with a focus on information-sharing and implementation.
The inception meeting brought together key stakeholders who are closely involved in the implementation of the project, marking the start of a collaborative process to identify practical solutions for overcoming financial and capacity-related barriers faced by green small-scale enterprises in Mpumalanga and Western Cape.
The OECD team launched a series of local stakeholder consultations in Mpumalanga with the support of Indalo Inclusive, and in partnership with the Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs (DARDLEA) and the Mpumalanga Green Cluster Agency (MGCA). These efforts laid the groundwork for conducting targeted local surveys, which aim to gather insights from financial institutions, incubators, small businesses, municipalities and community members.
As part of the Indalo Annual Symposium, the meeting convened approximately 40 key stakeholders, including representatives from municipalities, public institutions, small-scale businesses, local financial institutions, non-profit organisations, civil society and development partners. It initiated a stakeholder mapping exercise aimed at identifying the strengths and weaknesses of actors active in Mpumalanga.
Implementing the OECD Framework for Industry's Net-Zero Transition in South Africa
Between 2022 and 2025, the OECD worked with South African government, industry and financial sector stakeholders to identify policy and financing solutions for decarbonising the iron and steel sector. The implementation of the Framework in South Africa aims to help to accelerate the net-zero transition of the industry sector, focusing on iron and steel. It delivered recommendations on enabling conditions and financing solutions reform that can stimulate the deployment of low-carbon technologies, including carbon capture & utilisation and hydrogen usage in steelmaking, in alignment with the priorities and needs of South Africa. Its findings and recommendations were published in the report Implementing the OECD Framework for Industry's Net-Zero Transition in South Africa, launched on the sidelines of the G20 in 2025.
Validation meeting – 31 July 2025
This validation workshop brought together stakeholders to discuss the findings of the OECD's analysis, review recommendations for decarbonising South Africa's iron and steel sector and identify next steps ahead of the launch of the country report in October 2025.
