Addressing The Nation | Letter From The President

EU Investment Supports Inclusive and Sustainable Growth In South Africa

By Fiona Wakelin

The letter penned to the nation on October 13 by H.E. Cyril Ramaphosa focused the European Union investment initiatives in our country – this was occasioned by His Excellency’s attendance at the Global Gateway Forum in Brussels which showcases the EU’s investment initiatives around the world and is meant to advance its global relationships.

President Ramaphosa’s attendance at the forum follows the South Africa-European Union Summit that was held in Cape Town in March where the EU announced an investment package of 4.7-billion Euros to support strategic projects in South Africa. Last week, the EU announced a further investment package that will bring the total investment value to 11.5-billion Euros (+ R230-billion).

“This innovative partnership focuses on priorities that South Africa has set for itself as it strives to improve the lives of its people. These priorities include investment, the clean energy transition, skills and technology, connectivity and developing strategic industries. Importantly, the partnership will contribute to the work being done to create jobs. The investment package covers areas such as critical minerals, e-battery development, green hydrogen, renewable energy and vaccines. This will lead to the creation of a number of jobs, skills development and transfer of technology,” – H.E. Ramaphosa.

In his letter, President Ramaphosa emphasised that these investments will help to build the economy and accelerate South Africa’s transition to a low-carbon economy that is just and inclusive.

“The package aims to mobilise financing to invest in local processing and refining of minerals that are critical to the energy transition. It includes investments in projects to produce green hydrogen and derivatives that will set South Africa up as a world-leading producer for the local economy and for export. The investments are also expected to accelerate large-scale solar and wind power projects, while boosting energy efficiency in industry, housing and public services. These measures will reduce reliance on coal, lower costs and improve energy security for households and businesses,” -H.E. Ramaphosa.

More good news is that the investment package will also support the development of our rail, road and ports infrastructure, logistics and digital connectivity as well as the local manufacturing of pharmaceuticals, and the training and capacity building on biotechnology and pharmaceutical infrastructure.

“The EU investment takes place in the context of a more volatile global environment. There is a significant realignment of trade and investment between countries. In addition, rapid advances in technology and the escalating climate crisis are contributing to greater uncertainty. That is why South Africa is forging ahead with the work of building a resilient and sustainable economy that address [sic] the needs of the present while positioning itself for the needs and challenges of the future,” –H.E. Ramaphosa.