During a visit to South Africa on Thursday March 13, European Union leaders pledged an investment package of €4.7 billion ($5.10 billion), reinforcing their commitment to strengthening ties with Africa’s most advanced economy.
The announcement comes at a time when both the EU and South Africa find themselves at odds with the United States, marking a significant shift in international relations. The visit coincided with South Africa’s Presidency of the G20, a Summit that has seen limited engagement from U.S. officials.
The strained relations with the U.S. stem from President Donald Trump’s controversial foreign policy decisions, including his pivot towards Russia amid the Ukraine war and his pro-Israel stance, which has clashed with South Africa’s stance on the Israel-Palestine issue. Additionally, the U.S. has intervened in domestic politics in both Europe and South Africa, criticising Europe’s handling of immigration issues and reducing aid to South Africa due to its efforts to address racial land inequality. In contrast, the EU aims to improve its relationship with South Africa, which has remained neutral on Russia’s actions in Ukraine, refraining from outright condemnation of President Vladimir Putin.
European Commission President Ursula von der Leyen, speaking alongside European Council President Antonio Costa in Cape Town, emphasised South Africa’s crucial role in the global arena as a representative of the Global South. She highlighted Europe’s interest in supporting South Africa’s transition to a low-carbon economy and its industrial growth, particularly in sectors like clean hydrogen, where South Africa’s abundant resources could play a pivotal role. President Cyril Ramaphosa welcomed the support, stressing the importance of a mutually beneficial partnership between Africa and Europe, especially at a time when multilateralism is facing challenges from rising nationalism.