The US government, through the US Export-Import Bank, will provide up to $2bn in loans to South Africa to fund clean energy projects involving American companies.
A formal agreement for the 18-year loan period was signed on 7 August 2012 by officials from both the US and South Africa, as US Secretary of State Hillary Clinton continued her visit to the country.
Fred Hochberg, US Export-Import Bank president and chairman, said firms including General Electric, Santa Monica, SolarReserve and Siemens are likely to benefit from the funding.
"This agreement will help ensure that Ex-Im Bank continues to provide financing to South African buyers that want to buy high-quality US goods and services. This partnership will help create jobs and lasting economic opportunities for both our countries," added Hochberg.
Ex-Im Bank is open in over 180 countries and has identified nine key markets that offer great potential for US exports.
South Africa was chosen as one of these markets due to the size of its economy and close trading and investment ties to the US
Image: The loan will be used to build wind farms among other clean energy projects in South Africa. Photo: courtesy of Southgeist.