KfW Backs South African Energy Reform with €500M

South Africa has secured a €500 million loan from German state-owned development bank KfW to support the country’s Just Energy Transition (JET) program, aimed at expanding renewable energy adoption and strengthening energy security.

The funding will be directed toward energy sector reforms focused on climate change mitigation, infrastructure expansion and modernization, and enhancing grid resilience. The loan forms part of a broader €1.3 billion financing package from KfW to support South Africa’s energy transition and policy implementation.

South African Minister of Finance Enoch Godongwana emphasized the importance of the partnership with KfW in realizing the socioeconomic benefits of the energy transition, including job creation and attracting critical investments.

Cornelia Tittmann, KfW’s Country Director in South Africa, noted that the loan will help South Africa meet its climate goals, boost private sector participation in the energy sector and reinforce economic cooperation between Germany and South Africa.