The Minister of Trade, Industry and Competition, Parks Tau has noted that South Africa is positioning green hydrogen and related industries as major drivers of reindustrialisation, infrastructure, new export and job creation.
Speaking at the Africa Green Hydrogen Summit in Cape Town, the minister said green hydrogen should not be viewed in isolation, but as one component of a broader strategy to rebuild South Africa’s industrial base and strengthen its global competitiveness.
He identified sustainable aviation fuel, green chemicals, green shipping fuels, advanced manufacturing and emerging export industries as complementary opportunities capable of supporting the country’s reindustrialisation.
Tau stressed the need for South Africa to export more value-added products rather than primarily raw resources and to move higher up global value chains. In addition, he said 24 strategic integrated projects had been identified through the Just Energy Transition Investment Plan programme management office at the Industrial Development Corporation.
In terms of the financing for the Green Hydrogen Fund, Tau explained that climate Fund Managers closed the first R3 billion tranche in August, anchored by a European Commission commitment under its Global Gateway initiative.
“A further R628 million in grants has been made available, including R490 million for hydrogen infrastructure expected to mobilise an additional R10 billion, and R138 million to support Transnet’s efforts to decarbonise its operations.”
According to Tau, South Africa’s industrial transition pathways could generate tens of thousands of additional jobs and billions of rand in economic activity in the years ahead.
He called for stronger regional cooperation, saying African countries would need to work together to achieve the scale required to compete internationally.
“The government is also supporting Hive Hydrogen through the Critical Infrastructure Programme Fund to develop the Coega Green Ammonia Project, described by Tau as South Africa’s lighthouse green hydrogen project. Hive Hydrogen has concluded financial due diligence, unlocking R12.5 million of R25 million in project development funding, with a further R25 million application expected at financial close.”
“This will not only benefit the region but will also contribute to the broader economic landscape of South Africa” Tau concluded.
