European Union unveils €4.7 billion investment initiative for South Africa

Under the sunlit skies of Cape Town, European Commission President Ursula von der Leyen and South African leader Cyril Ramaphosa cemented a new chapter in bilateral ties Thursday, unveiling a €4.7 billion Global Gateway investment package (via Reuters).

The agreement, hailed as a cornerstone of renewed collaboration, targets South Africa's clean energy transition, vaccine production, and digital infrastructure upgrades—key priorities for a nation balancing growth with global climate commitments.

The deal, announced during the 8th EU-South Africa Summit, marks the European Union's largest single commitment to the nation, with €4.4 billion earmarked to phase out coal dependency and scale renewables.

Alongside the funds, both leaders launched talks on a pioneering Clean Trade and Investment Partnership—South Africa's first with the bloc—to align green industries, critical minerals, and job creation.