European Commission President Ursula von der Leyen has announced a €4.7 billion investment package for South Africa, on her visit to the country for the EU-South Africa summit, with the country's President Ramaphosa welcoming consolidated cooperation.
Issued on: 13/03/2025 - 22:33
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Von der Leyen was in Cape Town on Thursday alongside other European leaders to take part in the eighth EU-South Africa summit.
The European Commission president said the Global Gateway investment package was intended to support a just energy transition, vaccine manufacturing and digital and physical connectivity.
The summit aims to enhance bilateral cooperation, including in the economy, trade and investment relations and security and defence. South Africa is the EU’s largest trading partner in sub-Saharan Africa, with €49 billion worth of trade in goods in 2023.
The bloc has also recently become South Africa’s top source of foreign direct investment – 53.7 percent of the total in 2022.
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Cyril Ramaphosa meets with Antonio Costa and Ursula von der Leyen at the EU-South Africa summit in Cape Town, 13 March 2025.
Cyril Ramaphosa meets with Antonio Costa and Ursula von der Leyen at the EU-South Africa summit in Cape Town, 13 March 2025. REUTERS - Esa Alexander
Stronger ties
For Ivor Ichikowitz, founder and chairman of the philanthropic Ichikowitz Family Foundation in Johannesburg, which focuses on growth and development on the African continent, the rise of European investment in South Africa is good news.
"I think that the EU summit in South Africa this year is probably more important and more relevant than anybody ever expected it to be," he told RFI. “There has never been a time when South Africa needs the European Union more than right now."
Referring to the recent freeze of foreign aid by the United States under President Donald Trump, he added: "The breakdown in the relationship between South Africa and the United States poses a massive threat to the South African economy."
Ichikowitz believes a strong trading relationship with the EU is now crucial for South Africa.
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"This is a partnership based on shared values and common interests. A partnership that seeks to create prosperity for our citizens and promote peace, safety and stability," South Africa's President Cyril Ramaphosa said at the summit.
According to him, the new investment package will "consolidate cooperation in areas such as science and technology, education and skills development, climate action, peace and security, health and critical minerals".
A neutral voice
While South Africa is welcoming stronger ties with the EU in the wake of Trump's USAID cuts, the EU in turn is seeking more global support for its engagement in Ukraine against Russia, especially among non-aligned countries.
Ichikowitz believes a stronger bond with the EU will push Ramaphosa to assert South Africa's neutral stance.
“It means that South Africa has to now start walking the talk of neutrality. Historically, South Africa has definitely been identified as being an ally of Russia and against the West, when in reality, the stance of the government is that of neutrality."
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