• EU and South Africa start landmark negotiations on a Clean Trade and Investment Partnership.
• €4.7 billion Global Gateway package targets clean energy, connectivity, and health sectors.
• South Africa positioned as a strategic partner in EU’s global green transition.

European Commission President Ursula von der Leyen announced a €4.7 billion Global Gateway investment in South Africa at the EU-South Africa Summit in Cape Town today. This marks the initiation of negotiations for a groundbreaking Clean Trade and Investment Partnership.

South Africa will become the first nation to enter this new generation of EU trade agreements, focusing specifically on clean energy, technology, strategic industries, and critical raw materials.

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Why it Matters:

The EU’s commitment underscores its strategic focus on clean energy transition, strengthening local supply chains, and creating quality jobs in Africa.

Von der Leyen stated clearly, “We want to work together on three key initiatives. First, together we invest massively in projects that support the Just Energy Transition Partnership. We are doubling down with our support. We are here to stay.“

Investment Breakdown:

• Clean Energy (€4.4 billion): Massive support for renewable energy, green hydrogen, batteries, and related industries as part of the Just Energy Transition Partnership.
• Connectivity Infrastructure: Enhancing physical and digital connectivity, including investments in railway and port upgrades from Lubumbashi to Durban, and nationwide fibre and 5G networks.
• Health Sector (€700 million): Boosting local pharmaceutical capabilities to enhance vaccine and medicine production.

Von der Leyen emphasized the mutual benefits: “It’s important for us that the value added stays in South Africa. You will benefit. Our companies will benefit. And I think it is a true win-win.”

Global Context:

This investment package aligns with the Scaling Up Renewables in Africa campaign, aiming to catalyze global pledges during the upcoming G20 Summit in Johannesburg.

“Together we have launched a global campaign to power Africa with clean energy,” said von der Leyen. “Africa has enormous potential for renewable energy. The world is finally recognising it.”

Looking Ahead:

The partnership aims to drive sustainable economic growth and set a precedent for future EU trade agreements globally.

Von der Leyen concluded, “This is going to be the first G20 Summit ever held on the African continent. It is an opportunity to drive real progress toward a more equitable and sustainable world.”

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