European Union (EU)on Thursday pledged a €4.7 billion ($5.1 billion) investment package for South Africa to support green energy and vaccine production.
The pledge by the EU marks a significant step in strengthening economic and political ties amid US President’s financial aid cut for the country.
The commitment was made during the first bilateral summit between the EU and South Africa in seven years, held at President Cyril Ramaphosa’s office in Cape Town.
Speaking at the summit, European Commission President Ursula von der Leyen drew parallels between the histories of the EU and South Africa, both of which emerged from conflict and found a path to peace through reconciliation.
“South Africa remains an emblem of hope for the world,” von der Leyen stated.
“Today, we are together announcing an investment package to mobilize €4.7 billion in South Africa.”
South African President Cyril Ramaphosa echoed this sentiment, emphasizing the importance of collaboration in upholding shared values.
“This is the time to work together in defence of what we believe in—democracy, the rule of law, including the respect for international law and international humanitarian law,” Ramaphosa said.
The EU and South Africa already share a strong trade relationship, with the bloc being South Africa’s largest trading partner in sub-Saharan Africa.
Von der Leyen reiterated Europe’s commitment to expanding trade ties.
“We want to strengthen and diversify our supply chains, but we want to do it in cooperation with you,” she said, calling South Africa a “reliable partner” known for stability and predictability.
A major focus of the investment package is South Africa’s transition from coal to greener energy.
The EU pledged to continue supporting the Just Energy Transition Partnership (JETP), a multilateral initiative aimed at reducing carbon emissions. This comes in stark contrast to the recent U.S. withdrawal from a similar agreement.
“We know that others are withdrawing, so we want to be very clear with our support,” von der Leyen affirmed. “We are doubling down, and we are here to stay.”
The summit took place amid growing geopolitical tensions, with the EU reaffirming its commitment to South Africa’s leadership within the G20. Ramaphosa aims to use South Africa’s G20 presidency to advocate for debt relief and climate financing for developing nations—priorities that have been downplayed by the U.S.
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