Latest news with #JustEnergyTransitionPartnership
Business Insider
29-07-2025
- Business
- Business Insider
Africa's richest country gets €500 million loan from Germany for fossil-fuel move
Germany has approved a €500 million ($582 million) loan to support South Africa's transition away from fossil fuels. Germany has approved a €500 million loan to South Africa for its energy transition. The loan is provided through KfW and GIZ with concessional terms. Germany's financial support under JETP totals €1.3 billion so far. Germany has approved a €500 million ($582 million) loan to support South Africa's transition away from fossil fuels, deepening its financial commitment to the country's decarbonization efforts under the Just Energy Transition Partnership (JETP). The 13-year facility, provided through the German state-owned development bank KfW and implemented by the German Society for International Cooperation (GIZ), includes a three-year grace period and carries a fixed interest rate of 4.31%, the South African National, according to Bloomberg. The loan builds on two prior agreements finalised in 2022 and 2023, bringing Germany's total concessional loan support to South Africa via KfW to €1.3 billion. The funding is part of Germany's pledge under the broader $8.3 billion JETP package launched at COP26, which also includes financial backing from other major donors such as France, the UK, the US, and the EU. The latest round of financing will help bolster South Africa's short- and medium-term energy security while advancing its decarbonization goals, said Finance Minister Enoch Godongwana. South Africa generates approximately 80% of its electricity from coal, making it the most carbon-intensive economy among the G20 nations. The country's ageing coal-fired power fleet has also contributed to chronic electricity shortages, prompting urgent calls for investment in renewable energy infrastructure. Multilateral partners join the push for clean energy In addition to German support, other JETP financiers participating in the latest disbursement include the World Bank, African Development Bank, Japan International Cooperation Agency (JICA), and the OPEC Fund for International Development. In 2023, South Africa received $676 million in grant funding from wealthy nations to support its transition to cleaner energy. However, the government estimates that fully transitioning away from fossil fuels, such as coal, which currently accounts for 80% of the country's electricity generation and a third of its liquid fuel production, will require an estimated investment of 1.5 trillion rand ($78.4 billion).
Fibre2Fashion
16-07-2025
- Business
- Fibre2Fashion
Vietnam improves regulations to advance energy transition with UK help
With strong UK support through the Just Energy Transition Partnership (JETP) and various bilateral cooperation initiatives, Vietnam is gradually improving its regulatory framework, drawing on international expertise, experience and investment to advance its energy transition towards the goal of net-zero emissions by 2050. At the meetings of the Vietnam-UK Joint Economic and Trade Committee (JETCO) and the UK-Vietnam Free Trade Agreement (UKVFTA) Trade Committee in London recently, Vietnam called on the United Kingdom to step up support in management training, human resource development and building a sustainable renewable energy supply chain. UK businesses expressed strong interest in partnering with Vietnam in renewable energy, a Vietnamese news agency reported. With strong UK support through the Just Energy Transition Partnership and other initiatives, Vietnam is gradually improving its regulatory framework, drawing on international expertise, experience and investment to advance its energy transition towards the goal of net-zero emissions by 2050. UK businesses are keen on partnering with Vietnam in renewable energy. The 14th JETCO meeting discussed and agreed on a wide range of practical areas for cooperation, including agriculture, healthcare, banking and finance, renewable energy, the promotion of bilateral trade and investment, education, and capacity building. The BP Group and Vietnam's T&T Group signed a memorandum of understanding to promote e-mobility through a battery-swapping ecosystem for electric motorbikes. The United Kingdom is Vietnam's third-largest export market in Europe now. Fibre2Fashion News Desk (DS)
Web Release
04-07-2025
- Automotive
- Web Release
Daimler Truck Signs Letter of Intent for Vehicle Assembly in Senegal
Daimler Truck has signed a Letter of Intent with the Government of Senegal and Global Truck Systems (GTS) to establish a local truck assembly plant. As part of the agreement, Daimler Truck will serve as the exclusive supplier of dismantled truck kits (CKD – Completely Knocked Down) and act as the project's technology partner. The Senegalese government and GTS have formed a joint venture to lead the assembly operations. Production is expected to begin as early as 2026, with vehicles reaching customers the following year. The plant will assemble various Mercedes-Benz truck model series, tailored for government use—such as the Ministry of Defense, fire brigades, and police—as well as private sector needs including waste collection, construction, logistics, and transportation. Franziska Cusumano, CEO of Mercedes-Benz Special Trucks, highlighted the strategic importance of the initiative: 'The CKD delivery, transfer of know-how, and technical support reflect our partnership-based approach with the German Federal Government and the Republic of Senegal.' Michael Dietz, CEO of Daimler Truck Middle East/Africa, added: 'This project signals our long-term commitment to West Africa. Through local assembly, job creation, and technology transfer, we aim to contribute to regional economic development.'Strong German-Senegalese Partnership Strong German-Senegalese Partnership Senegal has been a valued partner of German development cooperation for decades. Since 2019, both nations have worked under a bilateral reform partnership, which evolved into a climate and development partnership in 2023 through the Just Energy Transition Partnership. The CKD project is a direct outcome of this collaboration, promoting local industrial development and sustainability. Senegal's Commitment to Industrial Growth The Senegalese government is supporting the project by providing industrial land, offering customs and tax incentives, and facilitating local workforce training. This initiative aligns with Senegal's broader strategy to expand domestic production and meet growing mobility needs. GTS: Operational Lead GTS is responsible for setting up and operating the assembly plant. This includes recruiting and training personnel, planning production facilities, assembling vehicles from CKD kits, and equipping them with specialized bodies such as cranes or container frames. GTS will also oversee sales operations. Daimler Truck's Contribution Daimler Truck will ensure a reliable supply chain, enforce quality standards, and manage technology transfer. The company will also provide long-term service support, ensuring the high quality of locally assembled vehicles. This project is expected to create qualified local jobs and boost industrial capabilities in the region. Through this strategic partnership, Daimler Truck, GTS, and the Senegalese government are laying the groundwork for sustainable automotive manufacturing in West Africa, setting a benchmark for industrial cooperation, economic development, and technological advancement. Further information on Daimler Truck is available at: and
Business Wire
03-07-2025
- Automotive
- Business Wire
Daimler Truck Signs Letter of Intent for Vehicle Assembly in Senegal
LEINFELDEN-ECHTERDINGEN, Germany & DAKAR, Senegal--(BUSINESS WIRE)--Daimler Truck has signed a Letter of Intent with the Government of Senegal and Global Truck Systems (GTS) to establish a local truck assembly plant. As part of the agreement, Daimler Truck will serve as the exclusive supplier of dismantled truck kits (CKD – Completely Knocked Down) and act as the project's technology partner. The Senegalese government and GTS have formed a joint venture to lead the assembly operations. Production is expected to begin as early as 2026, with vehicles reaching customers the following year. The plant will assemble various Mercedes-Benz truck model series, tailored for government use—such as the Ministry of Defense, fire brigades, and police—as well as private sector needs including waste collection, construction, logistics, and transportation. Franziska Cusumano, CEO of Mercedes-Benz Special Trucks, highlighted the strategic importance of the initiative: 'The CKD delivery, transfer of know-how, and technical support reflect our partnership-based approach with the German Federal Government and the Republic of Senegal.' Michael Dietz, CEO of Daimler Truck Middle East/Africa, added: 'This project signals our long-term commitment to West Africa. Through local assembly, job creation, and technology transfer, we aim to contribute to regional economic development.' Strong German-Senegalese Partnership Senegal has been a valued partner of German development cooperation for decades. Since 2019, both nations have worked under a bilateral reform partnership, which evolved into a climate and development partnership in 2023 through the Just Energy Transition Partnership. The CKD project is a direct outcome of this collaboration, promoting local industrial development and sustainability. Senegal's Commitment to Industrial Growth The Senegalese government is supporting the project by providing industrial land, offering customs and tax incentives, and facilitating local workforce training. This initiative aligns with Senegal's broader strategy to expand domestic production and meet growing mobility needs. GTS: Operational Lead GTS is responsible for setting up and operating the assembly plant. This includes recruiting and training personnel, planning production facilities, assembling vehicles from CKD kits, and equipping them with specialized bodies such as cranes or container frames. GTS will also oversee sales operations. Daimler Truck's Contribution Daimler Truck will ensure a reliable supply chain, enforce quality standards, and manage technology transfer. The company will also provide long-term service support, ensuring the high quality of locally assembled vehicles. This project is expected to create qualified local jobs and boost industrial capabilities in the region. Through this strategic partnership, Daimler Truck, GTS, and the Senegalese government are laying the groundwork for sustainable automotive manufacturing in West Africa, setting a benchmark for industrial cooperation, economic development, and technological advancement.
Time Business News
25-06-2025
- Business
- Time Business News
Seeking New Allies After Break with the U.S.
In a decisive shift in foreign policy, South African President Cyril Ramaphosa extended his visit to Canada following a tense and fruitless meeting with U.S. President Donald Trump in May 2025. This move marks the end of an era of reliable support from Washington, compelling South Africa to strengthen ties with Canada, the United Kingdom, and the European Union while striving to maintain its traditional policy of non-alignment. Collapse of U.S.-South African Relations The crisis in bilateral relations began in February 2025 when Trump signed an executive order halting all financial aid to South Africa — previously around $440 million annually, including PEPFAR funds — citing the Expropriation Act No. 13 of 2024 and allegations of discrimination against white populations. Tensions peaked during Ramaphosa's May 2025 Washington visit, when Trump's claims of 'white genocide' in South Africa shattered trust. Subsequent threats of tariffs and the expulsion of South Africa's ambassador, Ebrahim Rasool, in March 2025 severed ties, forcing Pretoria to seek new partners. The extended visit to Canada — a key player in the Just Energy Transition Partnership (JETP) — underscores this strategic shift, on economic and diplomatic support outside the U.S. orbit. New Allies: Canada, the UK, and the EU After the U.S. aid cutoff in February 2025, Ramaphosa deepened partnerships with Canadian Prime Minister Justin Trudeau, UK Prime Minister Keir Starmer, and EU leadership, including European Commission President Ursula von der Leyen. These countries have significantly increased investments in South Africa's energy transition and offered additional economic and strategic commitments: The EU allocated €4.7 billion in March 2025 for energy, infrastructure, and vaccine production, while exploring further funding for critical minerals and green technology to cement South Africa's role in global supply chains. allocated in March 2025 for energy, infrastructure, and vaccine production, while exploring further funding for critical minerals and green technology to cement South Africa's role in global supply chains. Canada boosted JETP funding by 57% post-COP26, reaching $2.5 billion , and likely offered expanded trade agreements in agriculture and renewable energy to offset potential U.S. tariff losses. boosted JETP funding by post-COP26, reaching , and likely offered expanded trade agreements in agriculture and renewable energy to offset potential U.S. tariff losses. The UK, through GuarantCo and British International Investment, provided $100 million in guarantees for 'green' projects, alongside plans to support skills training and defense cooperation to bolster South Africa's regional influence. Chatham House Analysts: 'By aligning with the EU, Pretoria mitigates the fallout from its conflict with Trump, leveraging the energy transition and critical resource partnerships as a strategic advantage.' However, new allies come with conditions, particularly regarding South Africa's role in global conflicts and economic orientation. Demands and Obligations of New Partners The UK and EU, concerned by separate U.S.-Russia talks on Ukraine, urge South Africa to more actively represent 'Global South' interests. Pretoria's experience in resolving African conflicts positions it as a key advocate for initiatives like the African Union's 2023 peace plan. During Ukrainian President Volodymyr Zelenskyy's April 2025 visit, Ramaphosa advocated for 'no-preconditions' talks, but the meeting was cut short. Professor Sifamandla Zondi, University of Johannesburg: 'Ukraine needs all the international legitimacy it can get—not just in Europe. South Africa could be Ukraine's gateway to Africa.' Rheinmetall Denel Munition (RDM), established in 2008, has drawn scrutiny amid Ukraine war-related ammunition shortages. Despite South Africa's legal bans and the administration's stance, Western partners continue pressing Ramaphosa for uninterrupted NATO supplies, indirectly supporting Kyiv. The South African leader treads cautiously to avoid domestic unrest, but how long he can resist this pressure remains uncertain. Testing Non-Alignment Policy The principle of 'active non-alignment,' reaffirmed by security advisor Sydney Mufamadi in May 2023, remains the cornerstone of South Africa's foreign policy. Ramaphosa avoids arms supplies, advocating for peace without preconditions. However, pressure is mounting: The Democratic Alliance (coalition partner) supports Ukraine. (coalition partner) supports Ukraine. The ANC and civil society are divided, with ongoing protests against Zelenskyy. are divided, with ongoing protests against Zelenskyy. RDM's activities since 2008 inadvertently tie South Africa to Western interests. In a New World Order Ramaphosa's prolonged Canada visit confirms the U.S. is no longer a reliable partner. By aligning with Ottawa, London, and Brussels, he seeks new leverage through economic, trade, and defense commitments. Yet, demands over Ukraine and closer NATO ties test South Africa's principles. Hudson Summarizes: 'This is a pragmatic response to a shifting world order, but Ramaphosa must tread carefully to maintain domestic trust.' South Africa stands at a crossroads, balancing its role as a 'Global South' leader with obligations to new allies. Whether Ramaphosa can preserve the country's independence while leveraging promised economic and strategic support from Canada, the UK, and the EU is the defining challenge of the coming years. TIME BUSINESS NEWS
