The EU has announced a €4.7 billion investment package for South Africa aimed at advancing cooperation in energy, healthcare, and technology. This move reinforces South Africa’s status as the EU’s largest trading partner in sub-Saharan Africa. The investment is seen as crucial for South Africa’s economic resilience, especially after recent US foreign aid cuts.
European Commission President Ursula von der Leyen recently announced a €4.7 billion investment package aimed at strengthening ties with South Africa. This announcement came during her visit to the country for the eighth EU-South Africa summit, where South African President Cyril Ramaphosa expressed support for enhanced cooperation between the two regions.
The Global Gateway investment package is designed to support South Africa’s transition to clean energy, boost vaccine manufacturing, and improve digital and physical connectivity. Furthermore, the summit focuses on improving bilateral cooperation in areas such as trade, investment, security, and defense.
As the EU’s largest trading partner in sub-Saharan Africa, South Africa has engaged in €49 billion worth of goods trade in 2023. Additionally, the EU has emerged as the top foreign direct investment source for South Africa, accounting for 53.7 percent of the total in 2022.
Ivor Ichikowitz, founder and chairman of the Ichikowitz Family Foundation, emphasized the importance of European investment for South Africa’s economic recovery, especially following the instability caused by foreign aid freezes from the United States. He remarked that now is a critical time for South Africa to strengthen trading relations with the EU.
President Ramaphosa highlighted that the new investment initiative aims to enhance cooperation across multiple sectors, including science, technology, education, skills development, climate action, health, and critical minerals.
In seeking to bolster its relationship with South Africa, the EU is also looking for global support for its actions in Ukraine, particularly from non-aligned nations. Ichikowitz suggests that this relationship may compel South Africa to more clearly adopt its stated neutral position amidst global tensions, as its historical alignment with Russia is well-known.
In summary, the EU’s €4.7 billion investment package signifies a pivotal development in strengthening ties with South Africa, fostering collaboration in crucial sectors. Both sides recognize the importance of this partnership in navigating economic challenges and geopolitical dynamics, particularly in light of the shifting landscape of global aid and alliances. This summit underlines the mutual benefits and shared values that can emerge from enhanced cooperation.
Original Source: www.rfi.fr
