South Africa secures German loan and French technical aid to upgrade power grid

In May 2026, the City of Johannesburg and Germany's development bank KfW agreed on a R3.8 billion (over US$230 million) concessional loan aimed at overhauling the municipal electricity utility, City Power. The funding is intended for urgent capital works, with City Power expected to contribute about 30% of Johannesburg’s 2026/27 budget revenue.

Separately, at the Africa Energy Forum in Cape Town, Eskom, the National Transmission Company of South Africa (NTCSA), France’s RTE International and the French development agency AFD signed a two‑year technical cooperation programme. Backed by a €650,000 (≈ZAR 12 million) grant from the French National Treasury, the initiative will help modernise South Africa’s transmission network through joint research, workshops, and expertise sharing on AI, HVDC and grid stability, supporting the country’s Just Energy Transition Partnership.

Both actions are part of broader efforts to strengthen South Africa’s electricity infrastructure and support its transition to a cleaner, more resilient energy system.