The European Union has recently announced a significant investment pact with South Africa, amounting to 4.7 billion euros. This investment aims to support the country’s just energy transition, focusing on various key areas such as the development of critical minerals, green hydrogen value chains, connectivity infrastructure, and the domestic pharmaceutical industry.
This funding was revealed by European Commission President Ursula von der Leyen during a visit to Cape Town, following the United States’ withdrawal from a similar energy transition partnership with South Africa. The US had initially committed $1 billion to this initiative, which has now left the total international pledges for the country’s just energy transition at $12.8 billion.
The EU-South Africa Global Gateway Investment package, as it is called, underscores the importance of supporting projects that align with South Africa’s transition to a low-carbon economy. Additionally, it aims to boost the country’s connectivity infrastructure and enhance the local pharmaceutical industry, particularly in the development of vaccines.
Von der Leyen emphasized the EU’s commitment to scaling up renewables in Africa, with a focus on delivering cleaner and more sustainable power to millions of people. She mentioned plans for a major pledging event in Johannesburg later in the year to rally global support for clean energy initiatives.
In light of recent diplomatic tensions, South Africa has sought to strengthen its ties with Europe, especially given the strained relations between the US and its traditional European allies. Von der Leyen highlighted the shared values of stability, predictability, and reliability that underpin the EU-South Africa partnership.
European Council President Antonio Costa echoed these sentiments, emphasizing the importance of the EU’s partnership with South Africa in fostering a fairer, more equal, and stable world. He stressed the bloc’s commitment to collaboration and solidarity in addressing global challenges.
The discussions between von der Leyen and South African President Cyril Ramaphosa also touched upon efforts to end the war in Ukraine. Ramaphosa confirmed that South Africa would host Ukrainian President Volodymyr Zelenskyy for a state visit in early April, underscoring the need for a just and lasting peace agreement.
Ramaphosa expressed his country’s neutrality in mediating the conflict between Russia and Ukraine, dispelling perceptions of bias. He reiterated South Africa’s commitment to facilitating a peace settlement and fostering dialogue between the two parties.
Overall, the EU-South Africa partnership signifies a shared commitment to sustainable development, clean energy transitions, and global peace efforts. The collaboration between these two regions underscores the importance of international cooperation in tackling pressing challenges and building a more resilient future for all.
