Transnet has secured a €300 million (about R6 billion) loan from Agence Française de Développement (AFD) to accelerate the decarbonisation of its port, rail and pipeline operations. As one of South Africa’s largest electricity consumers, Transnet Group Chief Executive Michelle Phillips says the funding will support a shift towards renewable energy procurement and early-stage work on green hydrogen infrastructure.
According to Phillips, the loan will enable the group to source approximately 300 GWh of renewable electricity per year – equivalent to around 20% of its total annual consumption. The programme is expected to support energy-efficiency improvements across ports and freight rail operations, which currently rely heavily on grid-supplied electricity for traction power, cargo handling equipment and industrial processes.
The agreement also includes technical assistance and feasibility studies related to green hydrogen infrastructure, particularly for port and rail corridors that may form part of future export or domestic hydrogen value chains. According to Phillips, this work remains at pilot and planning stage.
AFD describes the loan as aligned with South Africa’s broader clean energy transition and industrial decarbonisation objectives.
