Significant partnership between Transnet and Agence Française de Développement (AFD)
Transnet and the French Development Agency (AFD), with support from the European Union
(EU) announces key partnership to decarbonize South Africa’s national ports;
railway operator
On the sidelines of the G20 summit hosted by South Africa, the country’s national logistics company Transnet, in partnership with France through the French Development Agency (AFD) and with support from the European Union (EU), announced a major initiative to accelerate the transition to net-zero emissions.
Transnet, which manages South Africa’s rail, ports and pipeline infrastructure, has set ambitious targets for decarbonisation and corporate sustainability, and AFD is proposing a €300 million (R6 billion) loan to support these goals.
“The funding package from AFD will help revitalize our infrastructure while supporting our clean energy commitments under the Capital Investment Programme. Furthermore, this commitment will make a significant contribution to supporting Transnet’s decarbonization efforts, while actively exploring its strategic role and potential opportunities in the green hydrogen value chain,” said Michelle Phillips, Transnet Group CEO.
As a sustainability-related loan, implementation is linked to progress towards strategic goals. These include diversifying into transition minerals and increasing the use and purchase of 300 GWh of renewable electricity per year. This equates to 20% of Transnet’s electricity needs.
France’s contribution is also aimed at facilitating the transition from road transport to rail, including the rehabilitation of 550 kilometers of railway lines. Participate in the modernization of port infrastructure and strengthen overall service quality, reliability, and competitiveness.
The appeal of Transnet’s entire network.
“Transnet is a long-standing partner of AFD and plays a key role in decarbonising South Africa.
transition. With our support, Transnet will be able to pursue the opportunities arising from the green hydrogen economy, contribute to the modernization of its operations and reduce its environmental footprint,” said Remy Rio, CEO of AFD.
This future AFD financing to Transnet will form part of France’s contribution to Just Energy.
The Transition Partnership (JETP), which AFD has been implementing since 2021, implements France’s €1 billion commitment announced at COP26 to support South Africa’s just energy transition.
By completing the loan, which is a €7 million (R140 million) grant from the EU, AFD will help Transnet drive forward its green hydrogen strategy, which is the basis of a decarbonization pathway across key sectors such as ports, rail, pipelines and facilities.
This funding will support major research, impact assessments, pilot projects, and technical assistance.
This support will refine Transnet’s Green Hydrogen Roadmap and accelerate the scale-up of low-carbon hydrogen efforts across South Africa.
“Through its Investment Strategy Global Gateway, the EU supports concrete investments in South Africa’s green hydrogen economy – investments that reduce emissions and create quality jobs. Transnet, which plays a central role in railways, ports and pipelines, It is essential to building a reliable and scalable hydrogen ecosystem. This partnership will help provide the expertise and infrastructure needed for South Africa’s 2050 net zero target,” said Joseph Sikela, European Commission Head of International Partnerships.
