The EU has announced plans to invest nearly €5 billion in South Africa, with the aim of strengthening vaccine production in the country. The investment is part of the EU’s Global Gateway initiative and the EU’s vision is to deepen and strengthen cooperation with African countries in the longer term.
South African President Cyril Ramaphosa welcomes the investment and looks forward to “strengthening the country’s economy”.
The EU has decided this week to spend nearly €5 billion to support South Africa’s development in “sustainable energy” and vaccine production, reports Deutsche Welle.
The investment is part of the Global Gateway initiative, in which the EU aims to promote what it calls sustainability, as well as forging stronger ties with African countries.
The money is clearly divided between two priority areas, with the bulk going to projects that will drive South Africa’s transition to green energy – including the production of sustainable aviation fuel for export to the EU.
However, the EU is earmarking around €700 million to strengthen the country’s capacity to produce vaccines.
The European Union has announced a €4.7 billion ($5.1 billion) investment package for South Africa to support green energy and vaccine production, marking a significant step in strengthening economic and political ties. pic.twitter.com/Zm1KqtwQVX
— African News feed. (@africansinnews) March 14, 2025
Ramaphosa: “Strengthens our economy”
South African President Cyril Ramaphosa expressed optimism about the investment: “This investment will strengthen our economy and position South Africa as a key player in addressing global challenges such as climate change and health crises”.
Ursula von der Leyen, President of the European Commission, underlined the strategic importance of the cooperation: “In a moment of increased confrontation and competition, we must strengthen our partnership further”.
The investment marks an attempt by the EU to counter China’s growing influence in Africa, where Beijing has already pumped large sums into infrastructure. At the same time, the EU says it hopes to contribute to sustainable development and strengthen cross-continental relations.
But questions remain about the impact. Critics argue that the Global Gateway initiative lacks weight compared to China’s massive investments and point out that South Africa’s internal problems, such as corruption and inequality, risk slowing progress.