The European Union has pledged to invest €11.5 billion ($13.3 billion) in South Africa to support clean energy, infrastructure, and pharmaceutical projects, in one of the bloc’s largest recent commitments to an African economy.
The announcement, made late Thursday, highlights Europe’s deepening partnership with Africa’s most industrialized nation as it seeks to transition toward renewable energy and stimulate economic growth amid trade pressures from the United States.
According to the EU, a significant share of the funds will go toward accelerating South Africa’s shift to renewable energy, including investments in new power generation capacity, grid modernization, energy storage systems, and the development of green hydrogen.
The package also includes support for the Coega Green Ammonia Project, a flagship initiative aimed at meeting rising global demand for green ammonia used in agriculture, chemicals, and mining.
Additionally, part of the funding will strengthen pharmaceutical production capacity, enabling South Africa to manufacture vaccines and essential medicines for the wider African continent.
“Europe and South Africa share a common interest in clean growth, innovation, and resilience,” the EU statement said, describing the investment as a pillar of its broader Global Gateway strategy to promote sustainable partnerships with developing economies.
In March, European Commission President Ursula von der Leyen had pledged €4.7 billion during a visit to South Africa. It remains unclear whether Thursday’s announcement includes that earlier commitment or represents new funding.
The investment comes at a difficult time for South Africa, whose exports were hit by the 30% tariff imposed by U.S. President Donald Trump in August, alongside the expiration of a major U.S.-Africa trade initiative last month.
Pretoria is currently lobbying Washington to reconsider the tariffs, which officials say threaten jobs and growth.
With economic expansion lagging and unemployment persistently high, South African authorities hope the EU’s investment will help revive confidence, create jobs, and accelerate the country’s green transition while reducing dependence on coal-fired power.
Source: Reuters
Written By Rodney Mbua
