The European Commission has backed the SA-H2 Fund through its Global Gateway strategy as the blended finance vehicle reached a first close of ZAR 3 billion, approximately USD 182 million. The private equity fund will invest in large-scale energy transition projects across Southern Africa, including green hydrogen production, green ammonia and green methanol, and the decarbonization of hard-to-abate industries. The Commission committed capital to both the fund’s Development Tranche, which finances early-stage project preparation and technical assistance, and its Equity Tranches, which support projects from financial close through construction. Other investors include Invest International, South Africa’s Public Investment Corporation on behalf of the Government Employees Pension Fund, Sanlam Life and the Industrial Development Corporation of South Africa. The fund has already signed development funding agreements for a wastewater-to-green-methanol plant in Gauteng and the Hive Hydrogen Coega Green Ammonia Project. SA-H2 is targeting a final fund size of ZAR 12 billion by mid-2028.
European Commission2026-08-06
European Commission backs Southern African green hydrogen fund at ZAR 3 billion first close
The European Commission has backed the SA-H2 Fund through Global Gateway as the Southern African green hydrogen vehicle reached a ZAR 3 billion first close. The fund will finance project development and construction across the green hydrogen value chain and is targeting ZAR 12 billion by mid-2028.