Leveraging Monetary Policy to Support the Transitional Needs of South African Workers

This policy brief argues that South Africa's Just Energy Transition must move beyond infrastructure to prioritize workers and economic diversification. It suggests that reallocating 10% of bank lending (R52.41 billion) and reforming retirement industry offshore limits (R600 billion) could provide necessary funding. Key recommendations include expanding the Green Finance Taxonomy to include worker transition plans and implementing green capital requirements to incentivize job-creating investments.

• The Just Energy Transition Partnership (JETP) is an $8.5 billion financing agreement with international partners intended to help South Africa move toward renewable energy, but the author argues its current emphasis on electricity infrastructure may neglect workers' needs and broader economic diversification.
• Significant capital could be unlocked for developmental and onshore projects through financial system reforms: reallocating 10% of bank lending could mobilize approximately R52.41 billion, and reducing offshore investment limits in the retirement industry could unlock an estimated R600 billion.
• The brief recommends three specific policy interventions: expanding the South African Green Finance Taxonomy to include mandatory transition plans for workers, introducing green capital requirements and targeted refinancing lines to incentivize lending to job-creating sectors, and mandating corporate transition plans that prioritize skills development and workforce training.

APA

iej_admin (2025). Leveraging Monetary Policy to Support the Transitional Needs of South African Workers. Institute for Economic Justice. https://iej.org.za/resource/policy-brief/leveraging-monetary-policy-to-support-the-transitional-needs-of-south-african-workers/

Chicago

iej_admin. Leveraging Monetary Policy to Support the Transitional Needs of South African Workers. Institute for Economic Justice, 2025. https://iej.org.za/resource/policy-brief/leveraging-monetary-policy-to-support-the-transitional-needs-of-south-african-workers/.

Wikipedia

{{cite report |last1=iej_admin |title=Leveraging Monetary Policy to Support the Transitional Needs of South African Workers |publisher=Institute for Economic Justice |date=28 February 2025 |url=https://iej.org.za/resource/policy-brief/leveraging-monetary-policy-to-support-the-transitional-needs-of-south-african-workers/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{iejadmin2025leveraging, author = {iej\_admin}, title = {{Leveraging Monetary Policy to Support the Transitional Needs of South African Workers}}, institution = {Institute for Economic Justice}, year = {2025}, month = feb, url = {https://iej.org.za/resource/policy-brief/leveraging-monetary-policy-to-support-the-transitional-needs-of-south-african-workers/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }