European countries give South Africa R1.06 billion for new projects
The European Union has launched two gateway projects in South Africa, with grants valued at R1.06 billion to help the country’s just energy transition and develop green hydrogen and related products.
The projects were launched at the African Green Hydrogen Summit in Cape Town on Tuesday (15 September), with the EU, Germany, Denmark and the Netherlands involved.
Two projects, with grants valued at R690 million and R370 million, respectively, have commenced, aiming to develop green hydrogen pathways in South Africa.
The first project will promote value chains for raw materials and green hydrogen derivatives in South Africa, in partnership with the EU countries.
The project will be run through the Department of Electricity and Energy, focusing on building and strengthening an environment for green hydrogen and battery value chains.
While the project is focused on all of South Africa, the EU flagged specific zones in the Northern Cape, Limpopo and Mpumalanga for development.
The second project is a partnership between the EU, KfW Development Bank, and the Development Bank of South Africa.
This aims to unlock capital for investment in South Africa’s green hydrogen sector, mobilising support for both public and private investors.
The EU said that the R1.06 billion grants will help position South Africa as a leading producer of green hydrogen and related products.
They will also increase local value addition in minerals and battery value chains, contributing to job creation and sustainable growth.
“The projects are part of the broader Team Europe Global Gateway Investment Package worth more than R200 billion, announced in October 2025,” the union said.
They are a concrete demonstration of the EU’s commitment to translating the investment package into real jobs and growth in South Africa for a mutual benefit, it added.
“These projects show how we can create the right conditions for private investors to enter markets with high potential and deliver solutions that boost sustainable development,” it said.
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