Brussels: 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 while deepening long-standing ties with Europe.
According to South African Government News Agency, President Ramaphosa, during a media briefing on Thursday, stated that 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. The President, along with President Ursula von der Leyen of the European Commission, jointly addressed the media following the announcement of the European Union’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.
The President noted that the investment package will drive growth in critical sectors, such as green hydrogen, renewable energy, critical minerals, e-battery development, and vaccine production, while also supporting infrastructure development across rail, road, ports, logistics, and digital connectivity. He emphasized the importance of focusing on skills, small business development, and research and development, which he considers vital for the development of the South African people.
The EU remains South Africa’s largest trading partner and a significant source of foreign direct investment, accounting for 41% of total FDI into the country. Currently, more than 2,000 EU companies operate in South Africa, creating over half a million direct and indirect jobs. President Ramaphosa stated that 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 clean energy transition, technology transfer, skills development, and strategic industrial growth along value chains across Africa. The President expressed confidence that the partnership will not only accelerate South Africa’s just transition to a low-carbon economy but also position Africa as ‘the next frontier of clean global production.’
President Ramaphosa applauded the leadership of President von der Leyen and President Costa in giving form to the vision of a global gateway. He also expressed gratitude to the European Union for their support to South Africa’s G20 Presidency, and their agenda of solidarity, equality, and sustainability. 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.’