EU Pledges €4.7B Investment Package to South Africa

The EU will invest €4.7 billion in South African aid and development projects. The Global Gateway Investment Package will support South Africa’s transition to clean energy as well as local vaccine manufacturing.

The investment will support the processing of critical raw materials in South Africa, as well as green hydrogen production, renewable energy development, transport and digital infrastructure. The package will also promote local vaccine and pharmaceutical production.

“[This strategic partnership] will support our efforts to drive inclusive economic growth, create jobs, eradicate poverty and address global challenges in a spirit of solidarity, collaboration and partnership,” stated South Africa’s President Cyril Ramaphosa.

In addition to mobilizing investment, the partnership between South Africa and the EU is set to enhance regulatory cooperation between the bloc and the country. Short- to long-term solutions to driving the energy transition will include enabling South African energy company Sasol to deliver sustainable fuel – particularly aviation fuel – to the EU.