President Cyril Ramaphosa on Thursday announced a major boost to South Africa’s green economy ambitions, confirming that the European Union will invest an additional €11.5 billion in the country.
Speaking after bilateral engagements with European Commission President Ursula von der Leyen in Brussels on Thursday, Ramaphosa said the investment package would accelerate South Africa’s just transition to a low-carbon economy while creating jobs and strengthening supply chains across the continent.
“This investment will help to build the economy of the future in the South Africa of the present,” Ramaphosa said, adding that the package includes support for areas such as critical minerals, e-battery development, green hydrogen, renewable energy and vaccines.
“This will help to accelerate South Africa’s just transition to a low-carbon economy, while ensuring that no one is left behind.”
The announcement followed the South Africa-EU Summit held in Cape Town in March where both parties agreed to launch a Clean Trade and Investment Partnership.
The initiative aims to deepen cooperation on clean energy, technology transfer and strategic industrial development, with a focus on inclusive growth and climate resilience.
South Africa has positioned itself as a key player in Africa’s energy transition, seeking to decarbonise its coal-heavy power sector while ensuring that workers and communities are not left behind.
The country’s Just Energy Transition Investment Plan, backed by international partners including the EU, Germany, France, the UK and the US, outlines a multi-billion-dollar roadmap for shifting to renewables, modernising infrastructure and building green industries.
The EU remains South Africa’s largest foreign investor, accounting for 41 percent of total foreign direct investment.
Over 2,000 EU companies operate in the country, supporting more than half a million jobs.
Ramaphosa noted that the new investment would reinforce this partnership and contribute to Africa’s emergence as a frontier for clean global production.
Ramaphosa also welcomed the EU’s support for South Africa’s upcoming G20 Presidency, which will focus on solidarity, sustainability, and reform of global governance institutions.
Von der Leyen is expected to attend the G20 Leaders’ Summit in Johannesburg next month.
JN/APA