European Union leaders pledged €4.7 billion ($5.10 billion) to South Africa, aiming to strengthen ties amid strained US relations. The investment focuses on economic growth, particularly in clean technology, as South Africa seeks support for its transition to a low-carbon economy.
During their recent visit to South Africa on March 13, 2025, European Union leaders announced an investment package amounting to €4.7 billion (approximately $5.10 billion). This investment aims to reinforce ties with South Africa, particularly as it holds the presidency of the Group of 20 nations, amid increasing tensions with the United States.
The EU leaders articulated their commitment to strengthening relationships with Africa’s most advanced economy, especially in light of U.S. President Donald Trump’s controversial foreign policy, which has shifted towards Russia amidst the ongoing Ukraine conflict. Such pivoting has created friction, notably concerning South Africa’s position on various issues including the ongoing genocide case against Israel.
The U.S. administration has also intervened in the political dynamics between Europe and South Africa, criticizing Europe for its handling of far-right politics and for cutting aid to South Africa while neglecting historical racial injustices regarding land allocation. This trip is viewed as a pivotal opportunity to mend relations, particularly after South Africa’s reluctance to vocally condemn Russia’s actions in Ukraine.
European Commission President Ursula von der Leyen emphasized South Africa’s significant role in global affairs, stating the need to enhance their partnership during challenging times marked by global rivalry. At a meeting with South African President Cyril Ramaphosa in Cape Town, she stressed Europe’s desire to support South Africa’s economic growth, particularly in green technologies like clean hydrogen, which leverage the country’s abundant resources and renewable energy capabilities.
President Ramaphosa reciprocated by expressing South Africa’s goal to transition towards a low-carbon economy and further industrialize, while also valuing Europe’s commitment to multilateralism amidst growing nationalistic sentiments. He asserted the importance of fostering beneficial relationships between Africa and the European Union, emphasizing a partnership built on mutual interests.
The EU’s announcement of a €4.7 billion investment in South Africa signifies a strategic move to strengthen relations with the nation during a time of heightened tensions with the United States. Both European leaders and President Ramaphosa underscored the importance of collaboration in economic growth and multilateralism. This partnership aims to address climate challenges and capitalize on South Africa’s renewable energy potential, fostering a mutually beneficial framework between Europe and Africa.
Original Source: www.zawya.com
