South Africa’s Public Investment Corporation (PIC) has partnered with two development finance institutions to commit $37 million (approximately R655.6 million) toward financing the country’s green hydrogen industry.
The Development Bank of Southern Africa (DBSA) and the Industrial Development Corporation (IDC) are collaborating to support the SA-H2 fund, which mobilizes both public and private investments.
This fund is jointly managed by Climate Fund Managers, based in The Hague, and Invest International, a Dutch development finance institution.
Over multiple funding rounds, the IDC and DBSA will each contribute $10 million, while the PIC will provide $17 million.
PIC’s Chief Investment Officer, Kabelo Rikhotso, highlighted the corporation’s commitment to supporting infrastructure projects that offer strong financial returns alongside broad economic benefits.
Earlier, the European Union introduced grants to help accelerate the development of South Africa’s green hydrogen sector.
Meanwhile, energy giant Sasol is advancing a major green hydrogen project at the Boegoebaai port in the country’s northwest.
The initiative aims to supply both export markets and internal operations, although Sasol has recently refined parts of its strategy.
In a related development, Climate Fund Managers will allocate up to $20 million through the SA-H2 fund to complete the development phase of Hive Hydrogen’s flagship project—a planned large-scale green ammonia facility located in the Coega Special Economic Zone in the Eastern Cape.
The developers aim to reach financial closure by the end of 2026 and expect commercial production to begin by 2029.
