During her visit to South Africa for the EU-South Africa summit, Ursula von der Leyen announced a €4.7 billion investment package aimed at supporting a just energy transition and enhancing cooperation in various sectors. The investment underscores the EU’s role as South Africa’s largest trading partner and seeks to bolster bilateral relations amidst shifting global dynamics, particularly in light of the United States’ reduced aid.
Ursula von der Leyen, President of the European Commission, announced a significant investment package of €4.7 billion for South Africa during her visit for the eighth EU-South Africa summit. This initiative received strong endorsement from South African President Cyril Ramaphosa, signifying enhanced cooperation between the two entities.
The investment package is part of the Global Gateway initiative, which focuses on facilitating an equitable energy transition, bolstering vaccine manufacturing, and improving both digital and physical connectivity. The summit aims to deepen bilateral cooperation across various sectors, including economic relations, trade, investment, and security.
As South Africa’s largest trading partner in sub-Saharan Africa, the EU accounted for €49 billion in trade goods during 2023. Moreover, the EU emerged as South Africa’s primary source of foreign direct investment, contributing 53.7 percent of the total in 2022.
Ivor Ichikowitz, founder of the Ichikowitz Family Foundation, expressed optimism regarding the increasing European investment, stating, “I think that the EU summit in South Africa this year is probably more important and more relevant than anybody ever expected it to be.” He noted that the relationship between South Africa and the United States has deteriorated, raising concern about its impact on the South African economy.
President Cyril Ramaphosa emphasized that this partnership with the EU is founded on mutual values and interests, aiming to foster prosperity and stability. He indicated that the new investment will strengthen collaboration in key areas such as science, technology, climate action, and health.
While South Africa is fortifying its ties with the EU amid the backdrop of U.S. aid cuts, the EU is simultaneously looking to garner broader international support for its stance against Russia. Ichikowitz suggested that this strengthened alliance may compel South Africa to clarify its neutral position, given its historical ties with Russia.
The investment announced by the European Commission represents a substantial step in strengthening the partnership between the EU and South Africa. This initiative aims to address critical challenges through enhanced cooperation, particularly in sectors crucial for the South African economy. As global dynamics shift, the established ties with the EU may also influence South Africa’s international stance, particularly regarding neutrality.
Original Source: www.rfi.fr
