At the end of 2025, the International Partners Group (IPG) and the JET Project Management Unit published their joint progress report marking twelve months of implementation of the Just Energy Transition Partnership (JETP) in South Africa. The document highlights significant progress in transforming South Africa's energy system, confirming the relevance and robustness of this innovative mechanism for international cooperation in support of a clean, inclusive and socially equitable energy transition.
The GIP, comprising the United Kingdom, which holds the chairmanship, Denmark, the European Union, France, Germany and the Netherlands, reaffirmed its financial and political commitment to the JETP, despite the United States' withdrawal from the partnership in February 2025. The members of the Global Partnership Group have committed $10 billion, with additional bilateral contributions bringing the total to $12.4 billion. Including commitments from multilateral development banks, the total volume of financing mobilised now stands at $13.7 billion, illustrating the partners' continued confidence in South Africa's trajectory.
The report highlights that South Africa's just energy transition is progressing steadily, driven by significant advances in energy sector reforms, increased investment in renewable energy, greater openness to the private sector in electricity transmission, and strengthened distribution infrastructure. These developments confirm that the country remains on a positive trajectory, despite a global context marked by geopolitical and economic uncertainties.
JETPs are now establishing themselves as an international benchmark model, aligning national priorities with international public and private financing. This approach, which focuses on the leadership of beneficiary countries, is gaining visibility and inspiring other clean energy transition initiatives in emerging economies. In South Africa, this model has led to significant regulatory and institutional progress, paving the way for the establishment of the South African Wholesale Electricity Market (SAWEM), which is scheduled to launch in April 2026.
In this regard, the granting of a market operator licence to the National Transmission Company South Africa (NTCSA) by the regulator NERSA is a significant step forward. At the same time, a major transmission infrastructure development programme is underway, with plans to build more than 14,000 kilometres of transmission lines over the next decade. This programme is supported by independent transmission projects led by the private sector and a credit guarantee mechanism backed by the World Bank, designed to reduce risks and mobilise more capital.
The political momentum has also been strengthened by South Africa's presidency of the G20, which has emphasised decarbonisation while maintaining universal access to energy as a strategic priority. JET portfolios are now fully integrated into national governance structures, enabling enhanced coordination and more effective implementation of projects at all levels of government and across territories.
At the operational level, projects supported by the GII have contributed to concrete progress in several key sectors. Germany, through KfW, has granted a £150 million loan to the City of Cape Town to strengthen the resilience and capacity of its electricity network. The United Kingdom, through BII and PIDG GuarantCo, has put in place innovative guarantee financing of $100 million for an energy trading company, thereby facilitating the deployment of new generation capacity. The European Union, through the European Investment Bank, has signed a €350 million loan with Transnet, while France recently announced new €300 million financing to support the decarbonisation strategy of this strategic public company.
Technical assistance remains an essential pillar of the partnership. Denmark, in particular, continues to strengthen the capacity of South African institutions in the areas of regulation, electricity market development, energy planning and supply models, thereby contributing to the success of the future wholesale electricity market.
The social dimension of the transition remains at the heart of the JETP. Significant progress has been made in supporting small and medium-sized enterprises, thanks to the attraction of targeted investment and skills development programmes along the renewable energy value chain and beyond. A prime example is the Grootvlei Horticultural Centre of Expertise, funded by the Netherlands, which is well under construction on the site of the former Grootvlei power station. This project aims to create sustainable alternative jobs by promoting climate-friendly and water-efficient agriculture, while training a new generation of agricultural workers, managers and entrepreneurs in the region.
By 2026, the Just Energy Transition Partnership should continue to deliver tangible results by consolidating an enabling environment for transition, mobilising large-scale financing and maintaining strong political momentum. Partners now intend to focus on effective implementation, while capitalising on lessons learned to guide future JETPs and next-generation cooperation platforms.
The JET Project Management Unit plans to conduct an in-depth evaluation of implementation in collaboration with the members of the Integrated Steering Group and all stakeholders. The ISG's support remains strong and all partners reaffirm their commitment to the objectives set out in the 2021 Political Declaration, the 2022 Investment Plan and the 2023 Implementation Plan. In an uncertain geopolitical context, this partnership illustrates the strategic importance of supporting a just energy transition that fully integrates its economic, environmental and social dimensions.