European Commission President Ursula von der Leyen has announced a €4.7 billion ($5 billion) investment package for South Africa, as the European Union (EU) seeks to strengthen its influence in the region.
Speaking at a summit with European Council President Antonio Costa and South African President Cyril Ramaphosa, von der Leyen said €4.4 billion would be allocated to clean energy projects, including wind and solar power, as well as the production of clean hydrogen.
“We want to strengthen and diversify our supply chains. But we want to do it in cooperation with you,” von der Leyen stated, emphasizing that the EU’s approach prioritizes local job creation and environmental standards over mere resource extraction.
An additional €700 million will be invested in expanding vaccine manufacturing in South Africa to bolster local health security and supply chains.
South Africa, the EU’s largest trading partner in sub-Saharan Africa, exported goods worth €24 billion to the bloc in 2023, primarily minerals and automobiles. The EU’s direct investment in South Africa stood at approximately €71 billion in 2022.
The announcement comes amid shifting global trade dynamics and U.S. policy changes under President Donald Trump, who has imposed tariffs on EU steel and aluminum and threatened further trade restrictions on European alcoholic beverages.
