BERLIN, April 14 – Germany has agreed to extend a €200 million ($234 million) concessional climate loan to South Africa, strengthening bilateral cooperation on energy transition and critical minerals.
The financing will support upgrades to South Africa’s power grid and expand renewable energy capacity, according to South Africa’s foreign minister Ronald Lamola following talks with his German counterpart Johann Wadephul in Berlin.
Beyond the loan, Germany and the European Union have extended funding of more than €270 million for green hydrogen development and battery value chain partnerships, reinforcing efforts to position South Africa within emerging clean energy supply chains.
The agreements come amid shifting geopolitical dynamics, with Pretoria navigating a more strained relationship with the United States under President Donald Trump.
Despite tensions, including South Africa’s exclusion from certain Group of Twenty engagements this year, officials signaled continued backing from European partners.
The latest financing underscores Europe’s strategic interest in supporting Africa’s energy transition, while also securing access to critical minerals and clean energy value chains essential for future industrial competitiveness.
