The European Union has announced a pledge to invest €11.5 billion ($13.3 billion) in South Africa, focusing on clean energy, infrastructure, and pharmaceutical development, the bloc said late on Thursday.
A significant portion of the investment will go toward supporting South Africa’s transition to renewable energy through new power generation capacity, grid improvements, energy storage systems, and green hydrogen projects.
Africa’s largest economy has been working to attract investors to boost sluggish economic growth and tackle high unemployment, challenges that have been worsened by U.S. tariffs.
In its statement, the EU highlighted specific initiatives such as the Coega Green Ammonia Project, which aims to meet growing global demand for green ammonia in the agriculture, chemical, and mining industries.
The investment will also strengthen vaccine and pharmaceutical production in South Africa to serve the wider African continent, as seen on Reuters.
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European Commission President Ursula von der Leyen had earlier pledged €4.7 billion in investment during a visit to South Africa in March, but it was not immediately clear whether the new commitment includes that amount or is in addition to it.
South Africa’s export prospects have been negatively affected by a 30% tariff imposed by U.S. President Donald Trump on its goods in August and by the expiration of a major U.S. trade initiative with Africa at the end of last month.
South African officials are currently seeking to persuade the Trump administration to reduce the 30% tariff.
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Image Credit: Reuters
