The EU leaders announced a €4.7 billion investment in South Africa to strengthen ties during a visit in March 2025. The move aims to counter strained relations with the US and promote economic growth in South Africa, particularly in low carbon initiatives. Both the EU and South Africa stress the importance of a mutually beneficial partnership.
On March 13, 2025, European Union leaders announced a significant investment of 4.7 billion euros (approximately $5.10 billion) during their visit to South Africa. The announcement comes amid increased tensions between both the EU and South Africa with the United States, creating a backdrop for strengthening ties with Africa’s most advanced economy, particularly as South Africa holds the presidency of the Group of 20 nations.
The US has strained relations with European nations due to President Donald Trump’s controversial policies, including a noticeable pivot towards Russia amidst the Ukraine conflict. This shift has been exacerbated by Trump’s pro-Israel posture, leading to conflicts with South Africa over legal actions concerning Israel’s actions, as well as critical views on the handling of immigration in Europe.
The purpose of the EU delegation’s visit was partly to improve relations that grew tense when South Africa refrained from condemning Russia’s actions in Ukraine. European Commission President Ursula von der Leyen emphasized South Africa’s crucial role as a representative of the Global South, stating, “In a moment of increased confrontation and competition, we must strengthen our partnership further.”
During discussions with South African President Cyril Ramaphosa in Cape Town, von der Leyen expressed Europe’s commitment to supporting economic growth in South Africa, particularly in sectors like clean hydrogen. She highlighted that the EU recognizes South Africa’s potential and aims to facilitate its transition toward a low carbon economy.
President Ramaphosa echoed the sentiment, underscoring the importance of Europe’s backing in advancing industry and multilateralism against the backdrop of rising nationalism. He called for a “mutually beneficial partnership” as essential for African relations with the EU, affirming the need for collaborative growth initiatives attentive to local needs.
The EU’s pledge of $5.10 billion to South Africa marks a significant step in reinforcing ties amidst strained relations with the US. Both leaders emphasized the importance of collaboration, particularly in transitioning to a low carbon economy and promoting industrial growth. As the geopolitical landscape evolves, such partnerships signal a mutual interest in strengthening economic cooperation and addressing shared global challenges.
Original Source: www.zawya.com
