- €200m concessional loan secured to strengthen grid and expand renewable energy capacity.
- Additional €270m committed for green hydrogen and battery value chains.
- Partnership elevated to Strategic Partnership amid shifting global diplomatic dynamics.
During a high level visit to Berlin on 13 April 2026, South African Minister of International Relations and Cooperation Ronald Lamola secured a €200m concessional loan from Germany to support South Africa’s ongoing energy transition.
The funding will be directed towards upgrading the national electricity grid and accelerating the deployment of renewable energy capacity, reinforcing efforts to improve energy security and reduce emissions.
The agreement comes at a time of heightened diplomatic strain between South Africa and the United States. Following the return of Donald Trump to the White House, the US withdrew its US$1bn pledge from the Just Energy Transition Partnership in March 2025 and excluded South Africa from G20 meetings earlier in 2026.
In addition to the loan, Germany and the European Union committed a further €270m to support the development of green hydrogen and battery value chains, sectors viewed as critical to South Africa’s long term industrial decarbonisation and export competitiveness.
Bilateral relations between South Africa and Germany were also elevated to a Strategic Partnership, signalling deeper cooperation across critical minerals, cyber foreign policy and regional security.
Lamola expressed appreciation for Germany’s continued backing, noting that South Africa maintains a sense of inclusion within the G20 framework through the support of Germany and other partners, despite what he described as a current diplomatic shutout by the US administration.
Despite the withdrawal of US funding, the Just Energy Transition Partnership has expanded to approximately US$12.4 billion, with new contributors such as Denmark and Netherlands stepping in to help bridge the financing gap. Germany remains a leading contributor, with total commitments now reaching €2.68 billion.
Author: Bryan Groenendaal
