Sweden and South Africa Strike New Agreement

The Swedish government is working to develop more renewable energy sources in South Africa. South Africa’s Deputy President Kgalema Motlanthe and Sweden’s Deputy Prime Minister Maud Olofsson both committed themselves to working towards cleaner energy ahead of the climate change talks in Mexico later this year.

The Swedes also affirmed their support of the World Bank’s loan to Eskom. "South Africa is not alone; there are many countries that use coal as the main source of energy as they grow their economies," Olofsson said. The issue isn’t necessarily the use of coal as diversifying the energy supply is a crucial component to achieving energy independence sooner rather than later.

Pretoria-based World Bank spokesman Sarwat Hussain said regarding the proposed $3.75 billion loan to South Africa’s state-owned utility Eskom, “The challenge is about the economic growth imperatives of SA, especially in the post-recession phase.” (World Bank Stands behind Eskom)

Motlanthe said the scope of the discussion in the meeting on national, regional and global issues of common interest confirmed "the longstanding, sincere and mutually beneficial relationship" between the countries.

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