EU investment in SA is soaring

In contrast to its weak relationship with the US, South Africa's ties with the EU are going from strength to strength.

- By Peter Fabricius

Sasol's Secunda coal-to-liquids plant in Mpumalanga.

(Waldo Swiegers/Bloomberg via Getty Images)

As South Africa continues to wrestle with the US over tariffs and other issues, its relationship with its biggest economic partner, the EU, by contrast, goes from strength to strength.

At the SA-EU summit in Cape Town in March, the EU announced a €4.7-billion Global Gateway investment package with South Africa: mainly to boost connectivity, local vaccine production and biomanufacturing capabilities and, above all, produce clean energy.

Last month, when President Cyril Ramaphosa attended the EU's Global Gateway Forum in Brussels, European Commission president Ursula von der Leyen announced a new set of investments in South Africa from EU member states, which boosted the pledged investment from €4.7-billion to almost €12-billion.

EU ambassador to South Africa Sandra Kramer explained that the now almost €12-billion "Team Europe" Global Gateway package comprised:

• Advancing the just energy transition (€8.7-billion) with investments in green hydrogen projects, local critical raw material processing and renewable energy (solar, wind) projects;

• Ensuring a just transition (€1.2-billion) through dedicated funds for social measures such as reskilling workers, creating new jobs, research and innovation, and climate adaptation projects such as water security;

• Connectivity, green logistics and infrastructure (€1.3-billion) with investments in modern, sustainable rail, port and road infrastructure, renewable-powered logistics and digital connectivity; and

• Building South Africa's production of vaccines and other pharmaceuticals (€292-million) with investments in innovative research projects, training and capacity building in biotechnology, pharmaceutical infrastructure and vaccine roll-out.