France has committed €300 million to support South Africa’s Transnet, backing the state-owned logistics group’s renewable energy transition and critical infrastructure upgrades. The loan was announced in Pretoria during French President Emmanuel Macron’s visit and forms part of South Africa’s Just Energy Transition Investment Plan.
The financing, provided through France’s development agency AFD, ties disbursements to sustainability targets, including increased renewable energy usage across Transnet’s operations. The agreement was signed by AFD chief executive Remy Rioux and Transnet CEO Michelle Philips, with Deputy President Paul Mashatile confirming the deal.
The injection comes as South Africa’s freight and port systems face severe inefficiencies, grid-linked disruptions and operational bottlenecks that continue to undermine economic activity. The new package will support the rehabilitation of 550 kilometres of rail lines, modernization of key ports, and efforts to shift freight from road to rail to reduce emissions and improve logistical performance.
France’s renewed involvement in South Africa’s infrastructure transformation coincides with a broader reorientation of Pretoria’s global partnerships. After years of trade and policy tensions with the United States, South Africa has deepened cooperation with European partners for development financing, technology support and energy transition solutions.
In a complementary development, Transnet signed a €350 million loan agreement with EIB Global—the development arm of the European Investment Bank—supplemented by a €21 million grant from the European Union. This financing will strengthen port infrastructure, expand green hydrogen initiatives and enhance clean transport systems in line with South Africa’s climate commitments.
The signing ceremony in Johannesburg, attended by President Cyril Ramaphosa, European Commission President Ursula von der Leyen and EIB representative Andrew McDowell, underscored the strategic alignment between South Africa and the EU. Officials said the combined financing will help reduce freight costs, lower emissions and improve regional trade integration.
Neighbouring states such as Eswatini, which depend on South Africa’s logistics corridors, are closely monitoring the reforms. Improvements in port efficiency, rail reliability and energy stability are expected to generate spillover benefits across Southern Africa.
Analysts note that the dual European financing reflects South Africa’s shift toward the EU for critical infrastructure support at a time when relations with the United States remain strained. For Transnet, however, the next phase hinges on execution, delivering tangible improvements to an ageing logistics system that has long hampered growth and export performance.
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