The European Union has announced a €4.7 billion investment in South Africa, launching negotiations for a Clean Trade and Investment Partnership aimed at accelerating clean energy, trade, and infrastructure development. European Commission President Ursula von der Leyen unveiled the plan at the EU-South Africa Summit in Cape Town, positioning South Africa as a key partner in the EU’s global green transition. 

The funding package, part of the EU’s Global Gateway initiative, will prioritize renewable energy, critical infrastructure, and healthcare. Of the total investment, €4.4 billion will support clean energy projects, including green hydrogen, battery production, and renewables, aligning with the Just Energy Transition Partnership. Additionally, infrastructure improvements, such as railway and port upgrades from Lubumbashi to Durban and expanded digital networks, will enhance connectivity. Another €700 million will be directed toward strengthening South Africa’s pharmaceutical industry to boost vaccine and medicine production. 

Von der Leyen emphasized that this initiative is designed to create lasting value for South Africa while benefiting EU companies. “We are investing massively in projects that support the Just Energy Transition Partnership. This is a true win-win,” she stated. The investment aligns with the Scaling Up Renewables in Africa campaign, which aims to accelerate clean energy adoption ahead of the upcoming G20 Summit in Johannesburg. 

As the first nation to engage in this new EU trade model, South Africa sets a precedent for future agreements focused on sustainability and economic resilience. Von der Leyen highlighted Africa’s vast renewable energy potential, stating, “The world is finally recognizing it.” The partnership is expected to drive economic growth while reinforcing global commitments to ESG principles and carbon neutral strategies. 

Sources: 

https://esgnews.com/eu-unveils-e4-7-billion-investment-in-south-africa-for-clean-energy-trade-and-infrastructure/ 

https://www.reuters.com/world/africa/european-union-announces-47-billion-euro-investment-package-south-africa-2025-03-13/ 

https://ec.europa.eu/commission/presscorner/detail/en/ip_25_774 

https://www.enlit.world/finance-investment/eu-e4-7-billion-investment-in-south-africa/