• Funding targets rail upgrades, renewable energy, shift from road transport
• Deal supports South Africa’s $9.3 billion energy transition programme

The Just Energy Transition Partnership (JETP), launched at COP26, continues to channel international financing to South Africa. On Monday, Transnet announced in a joint press release that it had signed a €300 million loan agreement with the French Development Agency (AFD) to support the decarbonisation of freight transport.

“Transnet remains committed to modernising its rail and port infrastructure and operations to improve service quality, reliability and competitiveness, while advancing sustainable growth as part of its Reinvent for Growth strategy. This funding will assist in achieving these objectives by enhancing energy efficiency and accelerate reforms,” said Chief Executive Officer Michelle Phillips.

Reducing the carbon footprint of freight transport

The financing will support Transnet’s Freight Decarbonisation and Corporate Sustainability programme, aimed at improving operational efficiency and reducing the carbon intensity of its activities. It includes the rehabilitation of 550 kilometres of railway lines on the Cape corridors and the expansion of container transport capacity to encourage a shift from road to rail, which generates lower emissions.

The programme also includes the development of a 30-megawatt renewable energy project, as well as diversification into green hydrogen and logistics for transition minerals. The financing is structured as a flexible mechanism, allowing Transnet to allocate funds across a range of actions, subject to defined milestones.

The deal builds on France’s continued support for South Africa’s JETP, which is expected to mobilise $9.3 billion to support decarbonisation and the development of alternative economic activities. AFD has already supported the social aspects of the transition, including studies on repurposing Eskom’s coal-fired power plants and the creation of a dedicated training centre.

The financing reflects a broader shift to include logistics infrastructure in energy transition efforts, as the transport sector accounted for 12.7% of South Africa’s emissions in 2025, according to Transport Minister Barbara Creecy.

Abdoullah Diop