EU and South Africa Reinforce Partnership for Just Energy Transition
On the sidelines of the G20 Summit 2026 (#G20Summit2026) in Johannesburg, the European Union (EU) and South Africa signed two Memoranda of Understanding (MoU) in line with the Just Energy Transition (#JET). Furthermore, the French Agency for Development (AFD) also signed a EUR 300 million loan to support South Africa’s Transnet’s decarbonization drive.
In particular, the EU and South Africa signed the Strategic Partnership on Sustainable Minerals and Metals Value Chains. The agreement aims to foster Local Value Addition (#LVA) and industrialization in line with the SADC’s priorities.
“Within the Just Energy Transition Partnership (#JETP), South Africa, France, and our European partners are working together to decarbonize the South African productive sectors. With Transnet, we are strengthening our commitment to achieving the collective objectives set out in the #ParisAgreement on Climate. Our collaboration seeks to enable Transnet to pursue opportunities that will emerge from the green hydrogen economy, modernize its operations, and reduce its environmental footprint.”
AFD CEO Remy Rioux
In addition, the EU and South Africa signed a Clean Trade and Investment Partnership (CTIP) which seeks to boost trade and investment between the two sides in the fields of new clean energy, implementation of low-carbon technologies, access for #CriticalMinerals for Green Technologies, and other such projects that adhere to sustainable development goals (#SDG).
Last but not least, the French Development Agency (AFD) will provide much-needed financing to ailing state-owned Transnet to accelerate its #EnergyTransition. French President Macron and South African Deputy President Paul Mashatile witnessed the signing of the landmark agreement.
“The funding package from AFD will assist us in revitalizing our infrastructure while supporting the clean energy initiatives under the capital investment programme. In addition, this initiative will contribute significantly to supporting Transnet’s decarbonization journey while actively exploring the company’s strategic role and potential opportunities within the green hydrogen value chain.”
Transnet CEO Michelle Phillips
The financing will enable Transnet to purchase 300 gigawatt-hours (GWh) of renewable energy annually. This quantity corresponds to 20% of Transnet’s electricity consumption and will contribute to greening its rail and port operations. The AFD strongly supports shifting freight transport from highway to railway in a bid to reduce the carbon footprint. Additionally, part of the funds will go toward the rehabilitation of 550 kilometers of Transnet’s railway network. In the same vein, the EU is providing Transnet with a grant of EUR 7 million to advance its nascent green hydrogen (#GH2) strategy.
Overall, the AFD financial support is part of France’s billion-euro commitment at #COP26 to support South Africa’s Just Energy Transition. Through #GlobalGateway, the EU is happy to support South Africa’s decarbonization drive as outlined in #SouthAfricaVision2050.