The European Union has pledged a $5 billion (€4.7 billion) investment in South Africa to support clean energy initiatives, vaccine production, and other key development projects. The announcement was made on Thursday by European Commission President Ursula von der Leyen at a summit in Cape Town.
Most of the funds will be directed toward South Africa’s clean energy transition. This includes expanding wind, solar, and hydrogen power production. Additionally, the EU will invest in local vaccine manufacturing, enhancing the country’s ability to produce essential medicines.
“South Africa aims to protect the health of its people. Meanwhile, Europe seeks to diversify critical supply chains. This is what I call a true mutual interest,” von der Leyen said.
This investment is part of the EU’s effort to strengthen ties with South Africa, the most developed economy in Africa and its largest trading partner in sub-Saharan Africa.
Strengthening Relations Amid Global Challenges
The summit, which marked the first high-level meeting between the EU and South Africa in seven years, was held to address rising global uncertainties. South African President Cyril Ramaphosa noted that these challenges include increasing “unilateralism and economic nationalism.” His remarks reflected concerns over the impact of former U.S. President Donald Trump’s policies.
The reduction of U.S. aid, especially in areas like HIV/AIDS treatment, has raised concerns in South Africa. The loss of funding could disrupt vital health services for millions of South Africans.
“Given the challenges we face globally, it’s more important than ever to maintain strong partnerships and address issues together,” Ramaphosa told reporters.
Von der Leyen emphasized the EU’s commitment to ethical investment in Africa. She contrasted this approach with other foreign nations that focus on extracting resources for profit.
“Some countries are interested only in extracting raw materials and exporting profits elsewhere. That is not our model,” she said. “We aim to create local jobs, add value to communities, and uphold high environmental and labor standards.”
This investment underscores the EU’s long-term commitment to supporting South Africa’s development, with a focus on sustainable energy, local industries, and public health infrastructure.