CAPE TOWN, South Africa (BG) — The eighth EU-South Africa summit, held Thursday in Cape Town, marked a significant milestone as South Africa became the first country to sign a comprehensive €4.7 billion Global Gateway Investment Package with the European Union.
Co-chaired by South African President Cyril Ramaphosa, European Council President António Costa and European Commission President Ursula von der Leyen, the summit reaffirmed a renewed commitment to strategic collaboration between the two regions.
The investment package, unveiled as part of the EU’s Global Gateway initiative, aims to bolster sustainable growth, resilience and job creation in South Africa.
It comprises €303 million in EU grants and €4.4 billion in loans from European financial institutions, complemented by contributions from South African development banks.
The agreement targets three key areas: South Africa’s just energy transition, connectivity infrastructure and the domestic pharmaceutical industry.
“€4.4 billion from the Global Gateway package will go to projects supporting a clean and just energy transition in South Africa. It’s a significant first pledge in the context of the Scaling Up Renewables in Africa campaign. I hope it will inspire many others to contribute!” von der Leyen posted on X, formerly Twitter.
Under the just energy transition component, the package will support the shift to a low-carbon economy by developing green hydrogen and critical raw material value chains.
This includes financing facilities to leverage public and private investments, technical assistance for hydrogen projects, and investments in local processing and refining of raw materials.
Renewable energy projects, such as solar and wind power and grid-scale energy storage systems, are also prioritized, alongside efforts to develop workforce skills for a clean economy.
Connectivity infrastructure will see enhancements to transport corridors, including preparatory studies and financing for the North-South Transport Corridor, notably the Port of Durban, and the expansion of affordable fiber networks, with potential support for 5G development.
The deal will strengthen local vaccine production capacity in the pharmaceutical sector and enhance regulatory frameworks, positioning South Africa as a regional leader in vaccine technology transfer.
“Today’s summit has further strengthened our strategic partnership, which will support our efforts to drive inclusive economic growth, create jobs, eradicate poverty and address global challenges in a spirit of solidarity, collaboration and partnership. We look forward to contributing to the EU-Africa Ministerial and Summit meetings later this year,” Ramaphosa said during a media briefing alongside von der Leyen and Costa.
The summit follows months of preparatory engagements, including a Joint Cooperation Council meeting in January and an interparliamentary meeting in February.
