- Germany commits a €200 million concessional loan to South Africa, strengthening the electricity grid infrastructure.
- The partnership expands clean energy cooperation, including additional funding for green hydrogen and battery industries under the Just Energy Transition framework.
Germany has committed a €200 million concessional loan to support South Africa in strengthening its electricity infrastructure and expanding renewable energy capacity. The agreement followed high-level talks in Berlin between Ronald Lamola and German officials.
South Africa will use the funding to upgrade its national grid. The country currently struggles with grid limitations that restrict the integration of wind and solar projects. As a result, the loan will enable better transmission of renewable energy from generation sites to demand centres and improve overall energy distribution.
Germany, together with the European Union, will also provide an additional €270 million to support green hydrogen and battery industries. These investments will help South Africa reduce emissions, build industrial capacity, and strengthen competitiveness in low-carbon manufacturing.
The support forms part of the Just Energy Transition Partnership, which aims to shift South Africa away from coal-based power while maintaining economic stability. Following the withdrawal of a US$1 billion pledge by the United States, Germany increased its contribution, bringing its total commitment to about €2.68 billion.
Other partners, including Denmark and the Netherlands, have also increased their support, raising total partnership funding to approximately US$12.4 billion.
In addition, South Africa and Germany upgraded their bilateral relationship to a Strategic Partnership. Both countries will now expand cooperation beyond energy into areas such as critical minerals, cybersecurity, and regional stability, strengthening long-term collaboration on sustainable development.