EU invests €11.5bn in South Africa’s clean energy transition

The investment package covers areas such as critical minerals, e-battery development, green hydrogen, renewable energy and vaccines

The latest investment package from the European Union towards South Africa’s renewable energy ambitions, covering critical minerals, e-battery development, green hydrogen, renewable energy and vaccines, runs to the tune of €11.5 billion (R230 billion).

The investment packages are expected to “accelerate South Africa’s transition to a low-carbon economy while ensuring that no-one is left behind.”

This latest tranche of money expands on the €4.7 billion package announced at the EU-South African Summit in March, ushering in a new chapter in the EU-South Africa partnership, with Team Europe – the EU, its Member States, and development finance institutions – mobilising additional investment via Global Gateway. 

The package covers several strategic areas, including advancing the Just Energy Transition, connectivity, green logistics and infrastructure and building South Africa’s vaccine production.

New commitment to the Coega Green Ammonia Project

The package highlights a new commitment to the Coega Green Ammonia Project.  “Local production will meet increasing global and domestic demand in the agricultural, chemical, or mining sectors. It will also support South Africa’s ambition to become a global shipping hub as green ammonia becomes a choice for clean maritime fuel,” the EU said.

A second new commitment is to strengthen local biomanufacturing capabilities to produce vaccines and other pharmaceuticals in South Africa for the African continent.

According to President Cyril Ramaphosa, the package will also support rail, road and port infrastructure, logistics and digital connectivity.

“We welcome the special focus on skills, small business development, and research and development. This is vital for the development of South Africa’s people, our most valuable resource,” said the president during the Working Visit to the European Union, Brussels, Belgium.

He said South Africa and the EU maintain a dynamic and expanding bilateral partnership spanning trade, energy, education, science, human rights and health.

He added that the South Africa-European Union Summit in March agreed on pathways to further advance these economic ties.

“Since then, our officials have been engaged in technical discussions on the agreed launch of a Clean Trade and Investment Partnership.

“This innovative partnership focuses on investment, the clean energy transition, skills and technology, connectivity, and developing strategic industries along the entire supply chain.

“The partnership is expected to create jobs in South Africa and elsewhere on the African continent. We are hopeful that it will contribute to the development of Africa as the next frontier of clean global production.”

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