EU Strengthens Partnership with South Africa through €4.7 Billion Investment

During the eighth EU-South Africa summit, Ursula von der Leyen announced a €4.7 billion investment for South Africa, aimed at supporting energy transitions, vaccine manufacturing, and connectivity. This investment reflects the EU’s commitment to its largest trading partner in sub-Saharan Africa, fostering economic collaboration and stability. The partnership seeks to promote mutual interests while navigating complex global dynamics, especially following US aid cuts.

European Commission President Ursula von der Leyen has unveiled a substantial investment package of €4.7 billion for South Africa during her visit for the eighth EU-South Africa summit. President Cyril Ramaphosa greeted this initiative positively, highlighting the importance of consolidated cooperation between the two entities. This investment is part of the Global Gateway package, which aims to assist in a just energy transition, support vaccine production, and enhance both digital and physical connectivity.

The summit seeks to strengthen bilateral cooperation across various sectors, including trade, investment relations, and security. Notably, South Africa stands as the EU’s largest trading partner in sub-Saharan Africa, accounting for €49 billion in trade in 2023. Furthermore, the EU has recently become South Africa’s predominant source of foreign direct investment, representing 53.7 percent of the total for 2022.

Ivor Ichikowitz, founder of the Ichikowitz Family Foundation, expressed optimism regarding European investments in South Africa, 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 underscored the critical need for strong ties with the EU, particularly following the freeze of foreign aid by the United States under President Donald Trump, which he believes poses a significant economic threat to South Africa.

President Ramaphosa emphasized the partnership’s foundation on mutual values and interests, asserting that it aims to foster prosperity, peace, and stability. He noted that the investment package would enhance collaboration in areas such as science and technology, education, climate action, and health.

As South Africa embraces stronger ties with the EU against the backdrop of US aid cuts, the EU is similarly intent on rallying support for its position on Ukraine, particularly from neutral countries. Ichikowitz contended that this interaction would necessitate South Africa to reinforce its neutral stance in global affairs. He remarked, “It means that South Africa has to now start walking the talk of neutrality. Historically, South Africa has definitely been identified as being an ally of Russia and against the West.”

The recent €4.7 billion investment by the EU into South Africa marks a significant step towards strengthening bilateral ties, especially in the face of shifting geopolitical landscapes. With increased cooperation in essential sectors and a shared commitment to mutual prosperity, both South Africa and the EU stand to benefit from this partnership. The emphasis on neutrality in South Africa’s foreign relations may also reshape its global engagements moving forward.

Original Source: www.rfi.fr