South Africa’s state-backed logistics company Transnet announced that it has secured a €300 million loan from the French Development Agency (AFD) to modernize its strategic infrastructure and support its energy transition goals. The agreement was reportedly signed during the first Africa-focused G20 Summit, held in Johannesburg on November 22–23, 2025.
The loan repayments will be linked to Transnet meeting certain sustainability targets. Under the agreement, 300 GWh of the company’s annual electricity consumption is expected to come from renewable energy sources, and approximately 20% of its total energy needs will be covered by green energy.
The financing also covers projects such as the rehabilitation of 550 kilometers of railway lines and modernization of port infrastructure, aiming to shift transportation from road to rail and create a more efficient and environmentally friendly transport system. The loan is also expected to help Transnet increase energy efficiency, reduce carbon emissions, and strengthen its competitiveness.
Additionally, the European Union, through AFD, will provide a €7 million grant to support Transnet’s green hydrogen strategy. These funds will be used for feasibility studies, impact assessments, pilot projects, and technical support, reinforcing the company’s goal of increasing green hydrogen use in rail, port, and pipeline sectors and contributing to a sustainable energy transition.
Transnet’s modernization and sustainable energy investments aim to directly contribute to reducing the carbon footprint of the country’s logistics infrastructure and enhancing regional competitiveness.
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