EIB Global has signed a €350 million loan agreement with South Africa’s state-owned transport and logistics company, Transnet, supported by a €21 million grant from the European Union, to advance the country’s green transition under the Just Energy Transition Partnership. The funding will modernize port and rail infrastructure, develop green hydrogen facilities, and promote cleaner transport solutions while boosting economic growth and connectivity. The signing ceremony in Johannesburg was attended by South African President Cyril Ramaphosa, European Commission President Ursula von der Leyen, and EIB representative Andrew McDowell.
The investment programme aligns with both EU and South African climate goals and is expected to reduce emissions, lower freight costs, and improve transport efficiency, thereby strengthening trade connectivity. Under the European Union’s Global Gateway strategy, the funds will finance the renewal and rehabilitation of Transnet’s port and freight railway infrastructure and support new assets critical to building a green hydrogen value chain. The initiative is designed to create high-quality jobs, enhance competitiveness, and deliver lasting economic and social benefits across South Africa.
EIB Vice-President Ambroise Fayolle emphasized that the project focuses on communities that rely on safe and efficient transport, noting that modernizing Transnet will improve connections, expand business opportunities, and provide fairer, sustainable infrastructure. European Commissioner for International Partnerships Jozef Síkela highlighted the project’s role in building South Africa’s hydrogen economy, which is central to achieving the country’s 2050 net-zero goals.
Transnet CEO Michelle Phillips said the investment is a critical milestone for modernizing the nation’s transport infrastructure, reducing emissions, and preparing the ports and railways for a greener future. The development of green hydrogen infrastructure, along with enhanced port and rail connectivity, will strengthen South Africa’s position in regional and global trade, supporting the transition to a low-carbon, climate-resilient economy.
EIB Global, the development arm of the European Investment Bank, aims to support €100 billion of investment by 2027, fostering international partnerships and development finance to bring the EIB closer to people, companies, and institutions worldwide. The partnership with Transnet exemplifies EIB Global’s commitment to sustainable, inclusive, and climate-resilient infrastructure development.
