President Cyril Ramaphosa has welcomed a new investment package from the European Union (EU) valued at €11.5 billion (R230 billion), describing it as a significant step towards building South Africa’s economy of the future and deepening long-standing ties with Europe. Ramaphosa said the initiative opens new possibilities for trade and investment and marks the beginning of a new era of partnership and cooperation between South Africa and the EU.
This further investment from the EU will drive growth in critical sectors: green hydrogen, renewable energy, critical minerals and others.
President Ramaphosa and President of the European Commission, Ursula von der Leyen, jointly addressed the media following the announcement of the EU’s investment package. The announcement took place on the margins of the Global Gateway Forum at the headquarters of the European Commission, The Berlaymont, in Brussels, Belgium.
Ramaphosa said the investment package will drive growth in critical sectors, such as green hydrogen, renewable energy, critical minerals, e-battery development, and vaccine production, as well as supporting infrastructure development across rail, road, ports, logistics, and digital connectivity.
“These investments will help to build the economy of the future in the South Africa of the present. We welcome the special focus on skills, small business development, and research and development. This is vital for the development of our people, our most valuable resource,” the president said.
The EU remains South Africa’s largest trading partner and one of its most significant sources of foreign direct investment, accounting for 41% of total FDI into the country. More than 2 000 EU companies currently operate in South Africa, creating over half a million direct and indirect jobs.
Ramaphosa said the new investment package would advance the goals of the Clean Trade and Investment Partnership, agreed upon at the South Africa–European Union Summit held in Cape Town in March 2024. The partnership is aimed at promoting the clean energy transition, technology transfer, skills development, and strategic industrial growth along value chains across Africa.
The president further expressed his confidence that as well as accelerating South Africa’s just transition to a low-carbon economy the partnership will position Africa as the next frontier of clean global production.
“We applaud the leadership of President von der Leyen and President Costa in giving form to this vision of a global gateway… We are grateful to the European Union for the strong support it has given to South Africa’s G20 Presidency, and our agenda of solidarity, equality and sustainability,” the president said.
He added that he looks forward to hosting EU Commission President Ursula von der Leyen at the G20 Leaders’ Summit in Johannesburg next month, which will provide an opportunity to further advance a peaceful, just and inclusive world order.
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