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EU to invest 4.7bn euro in South Africa

The European Union is going to invest over 4.7 billion euros in South Africa. Of that, 4 billion euros is intended to finance the transition to clean energy. The other 700 million euros will go to stimulate the production of vaccinations.

This is what European Commission President Ursula von der Leyen has announced in Cape Town, where the first EU-South Africa summit since 2018 is currently being held. The summit is intended to strengthen the relationship between the EU and South Africa, including the trade relationship.

‘South Africa wants to protect the health of your people, as well as your autonomy and your local industry,’ said Von der Leyen to South African President Cyril Ramaphosa before the start of the official summit. According to her, both superpowers have “a real mutual interest” in this.

The EU, in turn, wants to do business with more suppliers to become less dependent on certain producers of essential medicines. Stimulating the production of vaccines can help with this.

EU invests money in the development of green hydrogen

In addition, 4 billion euros will go towards the transition to clean energy. The EU will invest this money in the development of ‘green hydrogen’, among other things.

The EU summit is an opportunity to improve the relationship between South Africa and the European Union, which deteriorated when South Africa refused to openly condemn Russian president Vladimir Putin for the invasion of Ukraine.

According to Ms von der Leyen, South Africa plays a crucial role on the world stage. ‘In a time of increasing confrontation and competition, we must further strengthen our partnership,’ she said during her speech.