The European Union announced Thursday evening a 11,5 billion euro investment plan (approximately 13,3 billion) On South Africa, intended to finance projects in the sectors of clean energy, infrastructure and pharmaceutical industry.
The initiative, unveiled following a meeting between the South African President Cyril Ramaphosa and the President of the European Commission Ursula von der Leyen in Brussels, is part of the strategic partnership between Pretoria and the EU.
A large portion of the funds will be devoted to accelerate South Africa's energy transition, by supporting the renewable electricity production, the modernization of the national electricity networkAnd the development of energy storage and green hydrogen.
South Africa, heavily dependent on coal for its electricity production, faces a recurring energy crisis marked by daily power outagesThe government hopes that these investments will help to reduce carbon emissions while stimulating economic growth et creating sustainable jobs.
Besides energy, Brussels also plans to support infrastructure and health projects, especially in the local production of medicines and vaccines, in order to strengthen the resilience of the African health system.
This financial commitment is in addition to the European programs already existing within the framework of the global gateway, the EU's international investment plan aimed at offer a sustainable alternative to Chinese financing of the “Belt and Road” project.
