South Africa: The European Union (EU) will invest $5.1 billion in South Africa. The EU is the largest trade and investment partner of the South Africa with a trade volume of $71.7 billion. The pledge was made at the EU-South Africa Summit to strengthen the bilateral relations at a time when both are on worst terms with USA.
Reportedly, the European Union leaders announced a €4.7 billion (counts to $5.10 billion) investment package during a visit to South Africa on Thursday, at a time when both are on worse terms with the United States than they have been for decades.
EU leaders said that their visit was an opportunity to strengthen close ties with Africa’s most advanced economy, coinciding with the latter’s presidency of the Group of 20 nations, which the officials from US has largely snubbed so far.
Recently, US President Donald Trump stunned the EU leaders with his back towards Russia in the Ukraine War, upending US policy since Moscow’s full-scale invasion in 2022. The pro-Israel stance has brought Trump into conflict with South Africa over its genocide case against Israel at the World Court.
US administration has also interposed itself in Europe and South Africa’s domestic politics, by criticising Europe for attempting to isolate the far right and ignoring voters’ concerns about immigrants, while cutting aid to South Africa over its efforts to address historic racial land injustice.
President Cyril Ramaphosa’s EU trip was an opportunity to ameliorate ties which soured when South Africa refused to outright condemn Russia’s Vladimir Putin for invading Ukraine.
EU’s Commission President Ursula von der Leyen said that SA had a vital role on the world stage as a leading voice of the Global South.
She further stated that in a moment of increased confrontation and competition, they must strengthen their partnership. Ursula at talks with President Cyril Ramaphosa in Cape Town added that Europe wanted to help the South African Economy to grow.
Sitting alongside European Council President Antonio Costa she explained that Europe understands potential of South Africa. She cited that South Africa has clean hydrogen, it is a place where they could make use of abundant raw materials and vast renewable energy potential.
President Ramaphosa on behalf of South Africa said that they want support from Europe to transition to a low carbon economy and grow industry that is valued for multilateralism at a time of rising nationalism. He said that African relations with EU must be built on a mutually beneficial partnership.