EU Pledges $5 Bln Investment in South Africa

In response to the US decision to slash aid to South Africa, the European Union has announced a $5 billion investment package aimed at boosting the country's clean energy transition and strengthening its vaccine manufacturing capabilities.

European Commission President Ursula von der Leyen unveiled the initiative during the first EU-South Africa summit in seven years, held in Cape Town.

The funding will primarily support the expansion of wind, solar, and hydrogen energy production, while also enhancing local vaccine production to reduce dependency on global supply chains.

Von der Leyen emphasized the mutual benefits of the partnership, stating that Europe seeks to diversify its critical supply chains while South Africa aims to protect public health and accelerate its green energy transition.

The move comes as South Africa faces significant funding gaps in key sectors, including healthcare and HIV/AIDS treatment, following former US President Donald Trump's decision to withdraw financial support.

South African President Cyril Ramaphosa welcomed the EU's support, highlighting the need for global partnerships to address rising economic nationalism and geopolitical uncertainty.

Unlike other global powers focused on resource extraction, the EU's strategy aims to create local jobs, enhance environmental standards, and support sustainable economic growth in South Africa.

This strategic investment not only strengthens ties between the EU and its largest trading partner in Sub-Saharan Africa but also positions Europe as a key ally in South Africa's green and economic transformation.