Germany Pledges a €200 Million Climate‑related Concessional Loan to South Africa
Berlin meeting advances Just Energy Transition, green hydrogen cooperation, and investment opportunities
To mark the 30th anniversary of the German–South African Bi-National Commission (BNC), established in 1996 by former South African President Nelson Mandela and former German Chancellor Helmut Kohl, Germany and South Africa convened their 12th BNC meeting in Berlin on 13 April.
The meeting between Foreign Ministers Ronald Lamola and Johann Wadephul was deemed a success, with both countries reaching agreements on several key priorities, including the Just Energy Transition Partnership (JETP). Germany committed to supporting South Africa through a new climate-related concessional loan of €200 million, alongside technical cooperation aimed at accelerating investment in grid infrastructure and renewable energy. This support aligns with South Africa’s efforts to pursue more ambitious climate targets and strengthen its energy transition.
Both countries also agreed to deepen cooperation on green hydrogen and battery value chains. Key initiatives include the second phase of the Hydrogen for a Just Transition in South Africa (H2SA II) programme, the establishment of a new finance facility, and more than €270 million in funding from Germany and the European Union under the Global Gateway framework. These measures are expected to bolster South Africa’s position in emerging clean energy industries.
The partnership is also set to enhance trade and investment cooperation by addressing non-tariff barriers and regulatory challenges, while improving the investment climate. In support of this, quarterly consultations will be held between South Africa’s Department of Trade, Industry and Competition (DTIC) and Germany’s Federal Ministry for Economic Affairs and Energy (BMWE), particularly in the areas of energy and transport infrastructure.
