Germany and South Africa have agreed on a €200 million concessional loan to support South Africa’s energy transition, with the funding directed toward strengthening the electricity grid and expanding renewable energy capacity — particularly in transmission infrastructure and renewable integration. The agreement was confirmed by South Africa’s Minister of International Relations and Cooperation, Ronald Lamola, following bilateral talks in Berlin.
The loan comes in addition to more than €270 million in separate German commitments to support green hydrogen development and battery value chain projects in South Africa. Together, the two tranches reflect a deepening strategic partnership aimed at accelerating South Africa’s shift away from coal-heavy electricity generation and building the country’s position in low-carbon manufacturing and clean energy exports.
The talks also advanced cooperation on critical minerals, with both countries agreeing to deepen collaboration on manganese and platinum — materials central to battery production and clean energy technologies. South Africa holds significant reserves of these resources, while Germany is actively working to secure stable supply chains for its industrial and energy transition requirements.
South Africa has faced persistent electricity shortages driven by constrained generation capacity and an overstretched grid, prompting increased reliance on international financing to support structural reforms. Germany remains one of its most significant partners in energy transition financing alongside broader cooperation on climate and industrial policy.
Source: angolanminingoilandgas.com