- South African President Cyril Ramaphosa has hailed a groundbreaking €11.5 billion (R230 billion) European Union investment package as a transformative boost to the South African economy and deepening strategic ties between the two regions.
The announcement was made during a joint media briefing with European Commission President Ursula von der Leyen on the sidelines of the Global Gateway Forum, held at the European Commission headquarters in Brussels. The initiative is part of the EU's broader Global Gateway Strategy and aims to strengthen sustainable development and infrastructure partnerships worldwide.
“This investment opens up new opportunities for trade and investment and marks the beginning of a new era of partnership and cooperation,” Ramaphosa said. He emphasized that the funding will catalyze growth in key sectors including green hydrogen, renewable energy, critical minerals, electric battery manufacturing and vaccine production. The development of infrastructure in the areas of transport, logistics and digital connectivity also plays an important role in the package.
The president praised the EU's focus on skills development, support for small businesses and research and innovation, calling it “essential for the development of our population, our most valuable resource.”
The EU remains South Africa's largest trading partner and an important source of foreign direct investment, accounting for 41% of total foreign direct investment. Over 2,000 EU companies operate in South Africa, supporting more than half a million jobs.
Ramaphosa noted that the investment is in line with the Clean Trade and Investment Partnership launched during the South Africa-EU Summit in Cape Town in March 2024. The partnership promotes clean energy transition, technology transfer and industrial growth across African value chains.
“This collaboration will accelerate South Africa’s just transition to a low-carbon economy and position Africa as the next frontier of clean global production,” Ramaphosa said.
He also thanked the EU for its support for South Africa's G20 presidency and its agenda of solidarity, equality and sustainability. President von der Leyen is expected to attend the G20 leaders' summit in Johannesburg next month, where discussions on building a peaceful, just and inclusive world order will continue.
Author: Bryan Groenendaal