Ramaphosa hails R230bn EU investment package to SA

PRESIDENT Cyril Ramaphosa has welcomed a new €11.5 billion (about R230 billion) investment package from the European Union (EU), describing it as a major step toward building South Africa’s “economy of the future” while strengthening longstanding trade and diplomatic ties with Europe.

- SIPHELELE DLUDLA

Ramaphosa said the package “opens new possibilities for trade and investment” and marks the start of “a new era of partnership and cooperation” between South Africa and the EU.

The announcement was made jointly by Ramaphosa and European Commission President, Ursula von der Leyen, on the sidelines of the Global Gateway Forum at the European Commission's headquarters last week.

Ramaphosa said the investment would support growth in several priority sectors, including green hydrogen, renewable energy, critical minerals, electric battery manufacturing, and vaccine production.

The package will also fund infrastructure development across rail, roads, ports, logistics, and digital connectivity.

Approximately R173bn is earmarked for Just Energy Transition, R24bn for the Just Component, R20bn in infrastructure and connectivity, and Rébn in building the pharmaceutical value chain.

“These investments will help to build the economy of the future in the South Africa of the present. We welcome the special focus on skills, small business development, and research and development. This is vital for the development of our people, our most valuable resource,” Ramaphosa said.