Ramaphosa Secures €11.5bn EU Investment to Power South Africa’s Green Future

President Cyril Ramaphosa has hailed the announcement of a new €11.5 billion (R230 billion) investment package from the European Union (EU) as a historic milestone in strengthening South Africa–EU relations and propelling the country’s transition toward a sustainable, modern economy.

Speaking during a joint media briefing with European Commission President Ursula von der Leyen in Brussels, Belgium, on Thursday, President Ramaphosa described the initiative as a “transformative partnership” that opens new frontiers for trade, technology, and industrial development between South Africa and Europe.

“These investments will help to build the economy of the future in the South Africa of the present. We welcome the special focus on skills, small business development, and research and development. This is vital for the development of our people, our most valuable resource,” Ramaphosa said.

The announcement took place on the sidelines of the Global Gateway Forum at the EU headquarters, The Berlaymont, marking a major step forward in Europe’s partnership with Africa’s most industrialised economy.

A Strategic Investment for Growth and Transformation

The €11.5 billion investment package — one of the largest in recent years between the EU and an African nation — will focus on renewable energy, green hydrogen, e-battery development, vaccine manufacturing, and digital infrastructure.

The package also includes funding for rail, road, port, and logistics development, with an emphasis on sustainable transport and cleaner industrial systems.

According to the Presidency, the initiative forms part of the EU’s Global Gateway Strategy, a €300 billion global investment programme aimed at fostering sustainable infrastructure and digital connectivity across developing economies.

“This partnership signifies a new era of cooperation and shared progress. It will enable us to transition to a low-carbon, high-growth economy while ensuring inclusivity and resilience,” Ramaphosa said.

Strengthening Economic and Industrial Ties

The European Union remains South Africa’s largest trading partner and one of its most important sources of foreign direct investment (FDI). The EU accounts for 41% of total FDI in South Africa, with more than 2,000 European companies operating locally, creating over half a million direct and indirect jobs.

President Ramaphosa emphasised that the new funding will reinforce the goals outlined in the Clean Trade and Investment Partnership (CTIP) — an agreement signed during the South Africa–EU Summit in Cape Town in March 2024.

The CTIP focuses on promoting clean energy cooperation, technology transfer, skills development, and industrial diversification to help both regions meet climate and development objectives.

“The investment package will help us achieve our shared ambition — to build an inclusive, sustainable, and technologically advanced economy that empowers communities while protecting the planet,” the President said.

Accelerating the Just Energy Transition

The EU investment aligns closely with South Africa’s Just Energy Transition Investment Plan (JET-IP), which seeks to mobilise financing for renewable energy expansion, grid modernisation, and green industrialisation.

Funds will support the scaling up of green hydrogen projects, solar and wind power capacity, and battery value-chain development, positioning South Africa as a leader in Africa’s clean energy transformation.

President Ramaphosa highlighted that the partnership is not just about capital inflows but about building capacity and competitiveness in emerging industries.

“This investment underscores our vision to make South Africa and Africa the next frontier of clean global production,” he said.

He further noted that the collaboration would help address unemployment and inequality through targeted programmes that develop technical skills, support small enterprises, and attract young people into renewable and digital sectors.

Shared Vision for Global Sustainability

President Ramaphosa praised President von der Leyen and Portugal’s Prime Minister António Costa, who co-chaired the Global Gateway Forum, for their leadership in advancing an international agenda of sustainable growth and equity.

“We applaud the leadership of President von der Leyen and President Costa in giving form to this vision of a global gateway,” Ramaphosa said. “We are grateful to the European Union for the strong support it has given to South Africa’s G20 Presidency, and our agenda of solidarity, equality, and sustainability.”

The President reiterated South Africa’s commitment to working with the EU to champion multilateralism, inclusive growth, and climate resilience.

Looking Ahead to the G20 Leaders’ Summit

President Ramaphosa also extended an invitation to President Ursula von der Leyen to attend the upcoming G20 Leaders’ Summit, which South Africa will host in Johannesburg next month — the first-ever G20 Summit to be held on African soil.

The summit is expected to advance discussions on sustainable finance, digital innovation, and Africa’s role in the global clean energy transition.

“The G20 Summit will provide an opportunity to deepen our partnership and to advance the vision of a peaceful, just, and inclusive world order,” Ramaphosa said.

Building the Economy of the Future

Analysts have described the investment as a major vote of confidence in South Africa’s economic reform agenda, particularly its efforts to stabilise the power sector, promote green industries, and enhance investor certainty.

The partnership is expected to unlock new opportunities in manufacturing, research collaboration, and regional value chains, while reinforcing South Africa’s role as a key economic hub for Africa–Europe cooperation.

In closing, President Ramaphosa said the partnership goes beyond trade and investment — it is about building a shared future rooted in sustainability, innovation, and human development.

“Together with our European partners, we are shaping an economy of the future — one that is green, inclusive, and resilient,” he concluded.