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EU Pledges €4.7B to South Africa for Clean Energy, Trade, and Infrastructure

The EU and South Africa have begun negotiations on a pioneering Clean Trade and Investment Partnership, supported by a €4.7 billion Global Gateway package focused on clean energy, connectivity, and health.

European Commission President Ursula von der Leyen announced the investment at the EU-South Africa Summit in Cape Town, marking South Africa as the first nation to engage in this next-generation EU trade agreement. The partnership will prioritize clean energy, technology, strategic industries, and critical raw materials.

Key Investments:

  • Clean Energy (€4.4 billion): Support for renewables, green hydrogen, batteries, and the Just Energy Transition Partnership.
  • Connectivity: Upgrading railway and port infrastructure (Lubumbashi to Durban) and expanding fibre and 5G networks.
  • Health (€700 million): Strengthening local pharmaceutical production for vaccines and medicines.

Why It Matters:

This initiative reinforces the EU’s commitment to clean energy, resilient supply chains, and sustainable job creation in Africa. It also aligns with global renewable energy goals ahead of the G20 Summit in Johannesburg.

What’s Next?

The partnership aims to drive long-term sustainable growth and set a model for future EU trade agreements worldwide.

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