South Africa’s state-owned freight logistics company Transnet and France’s development finance institution Agence Française de Développement (AFD) have signed a EUR 300 million loan agreement, approximately ZAR 5.8 billion, to support the decarbonisation of South Africa’s freight sector and strengthen Transnet’s operational sustainability.
The agreement was finalised in Johannesburg on 4 May 2026. It will fund the Transnet Freight Decarbonisation and Corporate Sustainability Program, helping the company improve energy efficiency, modernise its rail and port infrastructure, and advance South Africa’s Just Energy Transition Investment Plan.
Transnet plays a key role in the country’s freight and energy logistics and aims to reduce the carbon intensity of its operations. The loan will enable the company to shift more freight from road to rail, explore new areas such as green hydrogen and transition minerals logistics, prepare for renewable energy procurement, and strengthen its environmental, social and governance capabilities.
This funding deepens a partnership between Transnet and AFD that began in 2009 with the expansion of the Cape Town Container Terminal. It forms part of France’s contribution to South Africa’s Just Energy Transition Partnership and supports the €1 billion commitment announced by France at COP26.
The agreement follows a memorandum of understanding signed in November 2025 on the sidelines of the G20 Summit in Johannesburg, in the presence of French President Emmanuel Macron and South African Deputy President Paul Mashatile.
Disbursements of the loan will depend on Transnet achieving mutually agreed milestones focused on modernising transport operations, business diversification, renewable energy readiness, and governance improvements. These steps are intended to lower emissions, build climate resilience in priority corridors, and support the company’s long-term financial sustainability as part of its Reinvent for Growth strategy.
Transnet is South Africa’s state-owned freight logistics company responsible for rail, port and pipeline infrastructure. AFD is France’s main development finance institution supporting sustainable investment and the global transition to a more resilient and low-carbon economy.
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