The European Union has announced a €11.5 billion investment package for South Africa, aimed at accelerating the country’s transition to clean energy, strengthening industrial capacity, and improving key infrastructure. The pledge was unveiled during the Global Gateway Forum in Brussels, where President Cyril Ramaphosa met with European Commission President Ursula von der Leyen to finalize details of the partnership, as reported by Business Insider Africa.
According to the European Commission, approximately €8.7 billion of the total package will come through blended financing that combines public and private funds. The investment will prioritize green hydrogen development, critical minerals processing, renewable energy generation, and transport infrastructure. Additional allocations will support pharmaceutical manufacturing and local vaccine production, including the Coega Green Ammonia Project and other industrial initiatives, Engineering News reported.
President Ramaphosa described the initiative as a “transformative milestone” for South Africa’s green and industrial future. “This partnership will help to build the economy of the future in the South Africa of the present,” he said, emphasizing that the program aligns with the country’s Just Energy Transition goals. The partnership seeks to reduce coal dependency while promoting employment, skills development, and inclusive growth, according to the European External Action Service (EEAS).
Economic analysts have hailed the EU’s commitment as one of the largest foreign investment drives in South Africa’s recent history. They noted that its success will depend on transparent governance, clear regulatory frameworks, and the effective integration of local businesses into renewable and industrial value chains. Experts also believe the initiative could help stabilize South Africa’s energy supply and reinforce its position as a continental hub for green manufacturing and innovation, Engineering News added.
