SOUTH AFRICA – International Development Finance Corporation (DFC) announced the first disbursement of a U$40 million loan to Tetra4 Proprietary Ltd. to support the development of critical gas infrastructure and advance energy security in South Africa.
The project will be the first and only onshore natural gas liquefaction facility in South Africa. As Tetra4’s gas reserves are a non-depleting and renewing resource, the facility will both improve the reliability and the supply of energy.
Further, by offering a source that is estimated to be 25% cheaper than current alternatives, the project will reduce reliance on imported diesel fuels and diversify the country’s energy mix.
Additionally, the project will introduce modern technology that is entirely new to South Africa and help address the global shortage of helium, which has critical applications in medicine, telecommunications, and other highly developmental sectors.
Helium is also one of 35 mineral commodities identified by the U.S. Department of the Interior as critical to the economic and national security of the U.S.
Over the lifespan of the project, the Tetra4 facility is expected to increase the global supply of helium by eight percent.
Boehler is attending the Africa Investment Forum during a trip to Sub-Saharan Africa to highlight U.S. commitment to the region, explore private sector investment opportunities, and strengthen relationships with key regional partners in support of mutual development goals. Boehler will also travel to Ethiopia before returning to Washington.
Equipped with a more than doubled investment cap of US$60 billion and new financial tools, DFC has more resources to mobilize private sector capital to address development challenges and advance U.S. foreign policy in priority regions such as Sub-Saharan Africa.