EIB Global supports South Africa’s green transition with €350 million framework loan for Transnet

• A €350 million EIB loan and a €21 million EU grant for Transnet, supports South Africa’s green transition under the Just Energy Transition Partnership.
• The funds will modernise port and rail infrastructure and develop green hydrogen facilities, promoting cleaner transport and economic growth.
• The project aligns with EU and South African climate goals and is expected to reduce emissions, freights costs, improve transport efficiency and boost trade connectivity.

EIB Global, the development arm of the European Investment Bank (EIB), has signed a €350 million loan agreement with Transnet, South Africa’s state-owned transport and logistics company. The signing ceremony took place in Johannesburg and was attended by Cyril Ramaphosa, president of South Africa, Ursula von der Leyen, president of the European Commission, and Andrew McDowell representing the European Investment Bank.

Supported by a €21 million grant from the European Union, this major investment will help South Africa move towards a low-carbon, climate-resilient economy as part of the Just Energy Transition Partnership (JET-P).

The investment programme, aligned with the European Union’s Global Gateway strategy, will finance the renewal and rehabilitation of Transnet’s port and freight railway infrastructure. It will also support the development of new assets critical to building a green hydrogen value chain and facilitate a shift to cleaner modes of transport. By improving transport efficiency and reducing freight costs and emissions, the project is expected to have a broad economic impact across sectors. It will strengthen the country’s connectivity and competitiveness, while contributing to job creation.

EIB Vice-President Ambroise Fayolle, who oversees the Bank’s operations in South Africa, said:

“At the heart of this partnership are the people and communities who rely on safe, efficient transport every day. By supporting Transnet’s modernisation, we are helping to strengthen the connections that allow businesses to grow, workers to access new opportunities and families to build more secure futures. This investment is a concrete expression of our commitment to a just transition and one that delivers cleaner infrastructure, fairer opportunities and lasting benefits for people across South Africa.”

European Commissioner for International Partnerships Jozef Síkela added:

“Through our Global Gateway investment strategy, the European Union is supporting concrete investments in South Africa’s green hydrogen economy – investments that cut emissions and create high-quality jobs. With its central role in rail, ports and pipelines, Transnet is essential to building a credible and scalable hydrogen ecosystem. This partnership will help deliver the expertise and infrastructure needed to achieve South Africa’s 2050 net-zero goals.”

This operation reflects the strong commitment of the EIB to supporting South Africa’s transition to a greener, more inclusive economy.

The development of green hydrogen infrastructure is expected to play a key role in South Africa’s journey towards climate neutrality. Enhancing port and rail connectivity will further strengthen the country’s position in regional and global trade.

“This support from the European Union and its Bank comes at a pivotal moment for Transnet and for South Africa,” said Michelle Phillips, chief executive officer of Transnet. “Modern, sustainable transport infrastructure is the backbone of a thriving economy. These investments will help us move goods more efficiently, reduce emissions and prepare our ports and railways for a greener, more connected future. It’s a powerful vote of confidence in our people, our capabilities and our country’s vision for a just energy transition.”

Background information

About EIB Global

The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. It finances investments that contribute to EU policy objectives.

EIB Global is the EIB Group’s specialised arm devoted to increasing the impact of international partnerships and development finance, and a key partner of Global Gateway. It aims to support €100 billion of investment by the end of 2027 – around one-third of the overall target of this EU initiative. Within Team Europe, EIB Global fosters strong, focused partnerships alongside fellow development finance institutions and civil society. EIB Global brings the EIB Group closer to people, companies and institutions through its offices across the world.

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