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Germany Raises Just Energy Transition Partnership Funding for South Africa to €2.68 Billion

Germany Raises Just Energy Transition Partnership Funding for South Africa to €2.68 Billion
Monday, 26 January 2026 12:21
  • Germany raised its total JETP commitment to South Africa to €2.68 billion, up from €986 million in 2021.
  • Germany has already disbursed more than €1.4 billion under a program running through 2027.
  • European partners reaffirmed support for the JETP despite the United States’ withdrawal in 2025.

Despite the withdrawal of the United States and an electricity system still heavily reliant on coal, the Just Energy Transition Partnership (JETP) continues to advance in South Africa, supported in particular by renewed backing from European partners.

The Federal Republic of Germany reaffirmed its commitment to the JETP in South Africa and said it increased its total contribution to €2.68 billion, up from €986 million announced in 2021. Germany has already disbursed more than €1.4 billion under a program scheduled to run through 2027, according to statements by Rainer Baake, Germany’s special envoy for the JETP, following a recent visit to Pretoria.

According to Baake, quoted by Engineering News, Germany increased its funding envelope in response to strong demand for grants and concessional financing mobilized under the investment plan developed by South African authorities. Renewable energy projects have attracted a significant share of this interest, as reforms aim to further open the electricity sector to private investment and competition.

Germany’s position fits into a broader European effort to reaffirm support for the JETP. The United Kingdom announced on January 22, 2026, an extension of its $1 billion climate guarantee for South Africa, designed in part to support reforms of municipal electricity services.

European partners had already reaffirmed their support in 2025, after the United States announced its withdrawal from the partnership in March of that year, following Donald Trump’s return to the White House.

The JETP aims to support South Africa’s gradual exit from coal and accelerate its transition toward a low-emissions economy by increasing the share of renewable energy in the power mix.

However, despite strong growth in renewable capacity, South Africa remains heavily dependent on coal. The improved stability of the electricity system since 2025 has largely relied on stronger performance from existing coal-fired power plants, highlighting the difficulty of abandoning coal in the short to medium term.

This article was initialy published in French by Abdoullah Diop

Adapted in English by Ange J.A de BERRY QUENUM

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