The South African government has confirmed that the United States has formally withdrawn its pledged $1.5 billion in support for the country’s Just Energy Transition Partnership (JETP). The decision, communicated by the US Embassy on 28 February, follows executive orders issued by President Donald Trump earlier this year. The withdrawal affects both grant funding and potential commercial investments that were originally intended to help South Africa shift from a coal-dependent energy system to a more sustainable, renewable-based model. The US was one of the founding members of the International Partners Group (IPG), which launched the JETP in 2021 alongside the European Union, France, Germany, and the UK.
Despite this setback, South Africa’s JET Investment Plan (JET-IP) remains backed by several international partners, including Canada, Denmark, the Netherlands, Spain, and Switzerland, as well as financial institutions like the World Bank and the African Development Bank. However, the US exit has reduced total pledged funding from $13.8 billion to $12.8 billion. The JET Project Management Unit is now seeking alternative grant sources to replace the $56 million in US grant funding that had been earmarked for specific projects. South Africa has reaffirmed its commitment to a fair and inclusive energy transition, with all remaining IPG partners expressing their continued support.
The US decision comes against a backdrop of growing diplomatic tensions between Washington and Pretoria. Key points of contention include South Africa’s stance on Israel and the recent enactment of the Expropriation Act, which Trump has controversially linked to alleged threats against Afrikaans landowners. These tensions have also begun to impact South Africa’s leadership of the G20 Energy Transition Work Group, where disagreements over just and inclusive energy transitions have emerged. In response, South African officials are attempting to avoid divisive issues to ensure productive negotiations. Additionally, discussions with the US on liquefied natural gas imports could serve as a potential avenue to ease tensions and maintain some level of cooperation between the two nations.