The European Union has committed to investing 11.5 billion euros ($13.3 billion) in South Africa, focusing on clean energy, infrastructure, and pharmaceutical projects.
This investment aims to accelerate South Africa’s transition to renewable energy through new power generation capacity, grid upgrades, energy storage, and green hydrogen.
The funding will also support projects like the Coega Green Ammonia Project, which seeks to meet growing demand for green ammonia in agriculture, chemicals, and mining, as well as bolster vaccine production and other pharmaceuticals in South Africa for the African continent.
This investment comes as South Africa tries to attract investors to boost flagging growth and reduce high unemployment.
The country has faced challenges, including a 30% tariff imposed by the US on its goods in August, which has affected its export outlook. South African officials are working to persuade the US administration to lower the tariff.
European Commission President Ursula von der Leyen had previously pledged 4.7 billion euros in investment during a visit to South Africa in March, but it’s unclear if the latest pledge is in addition to or includes that amount.
