EU unveils R1bn-plus in grant-funded projects to boost SA’s green economy

EU ambassador to SA, Kristian Schmidt, announced one of the grant funding projects at the hydrogen summit
Two Team Europe Global Gateway projects valued at R1-billion-plus were unveiled at the 2026 Africa Green Hydrogen Summit in Cape Town on Tuesday.
Global Gateway is the EU’s strategy to fund sustainable projects worldwide “to connect people and protect the planet”.
Team Europe consist of the EU, its member States and development finance institutions (DFIs).
The two projects announced this week bring together the EU, Germany, Denmark, and the Netherlands, and will be implemented by Germany’s GIZ and KfW, in cooperation with South African DFIs and stakeholders.
GIZ is a development and capacity-building organisation and KfW a development bank.
Building on the strategic partnership between the EU and South Africa, the two projects will support the just energy transition (JET) and sustainable industrial development by seeking to position South Africa as a leading producer of green hydrogen and related products.
It will also aim to increase local value addition in minerals and battery value-chains.
This is poised to happen through the deployment of grant, equity and concessional capital for investment in green hydrogen projects in South Africa; by strengthening policy and environmental, social, and governance frameworks; fostering private sector engagement; improving access to finance; increasing investment in industrial research, development and innovation; and building skills and institutional capacity.
The first project, valued at R690-million (in grants), will aim to strengthen the enabling environment for green hydrogen and battery value-chains through policy support, investment facilitation and capacity development.
The European partners are the EU, Denmark, Germany/BMZ (implemented by GIZ), and The Netherlands. The South African partner is the Department of Electricity and Energy.
Areas of intervention include strategy, policy and regulatory frameworks; private sector cooperation and finance; capacity strengthening; research and development; as well as sustainability and the JET.
The geographical focus will be all of South Africa, but with a specific focus on the Northern Cape, Limpopo and Mpumalanga.
The second project is a trilateral partnership to unlock grant, equity and concessional capital for investment in the green hydrogen sector in South Africa.
The European partners are the EU and KfW, with local partner the Development Bank of Southern Africa.
The project consists of a R370-million grant, as well as an unspecified concessional loan.
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