- South Africa has secured a concessional climate loan from Germany to the value of R3.8 billion, to boost the country’s power grid
- South Africa’s Minister of International Relations and Cooperation, Ronald Lamola, thanked Germany for its continued support
- Social media users expressed concerns about the country’s increasing debt and future financial burdens on the next generation
Source: Getty Images
Byron Pillay, a Briefly News journalist, has dedicated a decade to reporting on the South African political landscape, crime, and social issues. He worked as a newspaper journalist for 10 years before transitioning to online.
GAUTENG – South Africa has been given a major financial boost by Germany, but social media users are raising concerns over it.
Germany has agreed to give South Africa a R3.8 billion (€200 million) concessional climate loan, while also agreeing to deepen cooperation between the countries in other areas like critical minerals.
The news of the loan was confirmed by South Africa’s Minister of International Relations and Cooperation, Ronald Lamola, on Monday, 14 April 2026.
Read also
Lamola expresses gratitude for German support following South Africa’s G20 snub
Lamola says loan will support investment
Speaking about the concessional climate loan, Minister Lamola said it would support investment in South Africa’s power grid and renewable energy capacity. He explained that the loan was agreed upon after talks with German counterpart, Johann Wadephul, in Berlin.
The minister also confirmed that the German and European Union funding for green hydrogen and battery value chain cooperation had also been extended by more than 270 million euros.
Lamola thanks German Foreign Affairs minister for support
Minister Lamola also thanked Wadephul for Germany’s support for South Africa amid the strained relationship with the United States. The US and SA have not seen eye to eye since Donald Trump’s second term in office, as the US President claimed that terrible things were happening in the country.
Trump refused to attend the G20 Summit in South Africa in November 2025 and has barred the country from attending the 2026 event in Miami. Despite the exclusion, Lamola said the country still felt included.
Read also
Finance Minister not attending G20 finance meeting amid frosty relations with USA
“We feel we are part of it (the G20) because of the support that we have received from Germany and from other G20 members,” he said.
Source: Getty Images
Social media users weigh in on the loan
Social media users weighed in on the news, with many stating that a loan had to be paid back. Others also noted that South Africa was already in debt.
@AndreFaro3 said:
“Concessional climate loan. This means that the money will not assist the South African people. Climate loan, but our minerals are sold, and the South African people get nothing of the money.”
@vhotumimashaba asked:
“Government, how are we taking loans when SARS claimed back so much revenue? Shouldn’t we be paying back the countries we owe? Also, why take money from a country that supports Netanyahu?”
@Vuyo40049555 questioned:
“How are we expected to pay back all these loans? South Africa, we can’t allow this to happen. This is the burden for future generations.”
@MrJLabuschagne said:
“They keep borrowing money we don’t have to fund their Lamborghinis and mansions. Cry, my beloved country.”
Read also
US-Iran negotiations collapse after 21 hours in Islamabad, Vance confirms
@Levigos questioned:
“How many loans has SA taken thus far under Ramaphosa’s presidency? We are going to need Madlanga, post Ramaphosa’s administration, to look into where/how these monies were spent, including the R500 billion Covid-19 Relief Fund. His administration seems to be obsessed with a lot of zeroes/money.”
@henri_smit43170 stated:
“We don’t need loans. We need business-friendly policies that grow the economy.”
European Union announced investment in South Africa
Briefly News reported that the European Union announced a €4.7-billion investment in South Africa in March 2025.
The Global Gateway Investment Package is to boost clean energy and vaccine manufacturing in South Africa.
Citizens were divided by the news, with some saying that the EU was making a big mistake by giving South Africa money.
Source: Briefly News
