Ursula von der Leyen announced a €4.7 billion investment for South Africa, promoting cooperation in energy transition and healthcare. The EU seeks closer ties following USAID cuts, with South Africa striving to maintain a neutral diplomatic stance while enhancing economic relations.
European Commission President Ursula von der Leyen recently announced a €4.7 billion investment package for South Africa during her visit for the EU-South Africa summit. South African President Cyril Ramaphosa expressed appreciation for this strengthened cooperation. The investment aims to support a just energy transition, vaccine manufacturing, and enhance both digital and physical connectivity between the nations.
Taking place in Cape Town, the eighth EU-South Africa summit aims to foster bilateral cooperation, focusing on economic, trade, and investment relations, as well as security and defense. South Africa represents the EU’s largest trading partner in sub-Saharan Africa, with €49 billion in trade goods recorded in 2023. Moreover, the EU has become South Africa’s top source of foreign direct investment, accounting for 53.7 percent of the total in 2022.
Ivor Ichikowitz, founder of the Ichikowitz Family Foundation, emphasized the importance of increased European investment, stating it is particularly crucial for South Africa given the recent freeze of foreign aid by the United States. He remarked that the EU summit was likely more significant than anticipated, as South Africa requires EU support now more than ever.
President Ramaphosa highlighted the partnership with the EU as one based on shared values and interests, aimed at enhancing prosperity, peace, safety, and stability. The new investment package is expected to consolidate cooperation in diverse sectors, including science, technology, education, climate action, health, and critical minerals.
While South Africa seeks to strengthen ties with the EU, especially following cuts to USAID by the United States, the EU also aims for greater support for its position regarding Ukraine amidst the ongoing conflict with Russia. Ichikowitz believes this will prompt Ramaphosa to assert South Africa’s chosen neutrality, marking a shift from previous alliances. Historically, South Africa has been seen as an ally of Russia rather than the West, which highlights the complexity of its diplomatic positioning.
The announcement of a €4.7 billion investment package by the European Union during the recent summit in South Africa marks a significant step towards strengthening ties between the two. This partnership, which focuses on mutual prosperity and stability, aims to facilitate essential areas such as energy transition, healthcare, and technology. While South Africa embraces this relationship, it navigates the challenges posed by past alliances and current global geopolitical shifts.
Original Source: www.rfi.fr
