Eu Presents Sa With 4.7bn Investment Package

President Cyril Ramaphosa has welcomed the European Unions 4.7-billion Global Gateway Investment Package aimed at supporting strategic investment projects in the country.

During a press briefing following the 8th South Africa-European Union Summit in Cape Town on Thursday, Ramaphosa said the investment package aimed to support a clean and just energy transition, digital and physical connectivity infrastructure and the local pharmaceutical industry.

The investment package covers areas such as critical raw mineral processing, green hydrogen, renewable energy, transport and digital infrastructure, local vaccine and pharmaceutical production, and resources for skills development, Ramaphosa said.

To boost the competitiveness of our economies, we agreed to launch negotiations towards a Clean Trade and Investment Partnership. This will support the development of cleaner value chains for raw materials and local beneficiation, renewable and low-carbon energy, and clean technology.

He said the partnership would also serve as a platform for regulatory cooperation between the European Union and South Africa in areas of mutual interest related to clean supply chains.

This partnership is expected, for example, to deliver short- and long-term solutions to enable Sasol to export sustainable fuel, especially aviation fuel, to the European Union.

Ramaphosa noted that the summit the first held in seven years had reflected mutual commitment to enhancing our strategic partnership for the mutual benefit of our people.

As a regional bloc, the European Union EU is South Africas biggest trading partner, recording some 49.5bn in total trade in 2023, with EU foreign direct investment into South Africa reaching around 71bn in 2022.

Todays summit focused on strengthening our trade and investment relations, which are vital for the growth of our economies and the achievement of our development goals, Ramaphosa said.

Discussions also focused on other areas, including green energy, science and health.

We have prioritised the transition to green energy, ensuring that this process is just and inclusive and safeguards the livelihoods of those most affected by the transition. We also discussed our robust cooperation in education, science, technology and innovation, and health.

We have recognised the vital importance of developing the skills and capabilities of young people, starting from early childhood development through to the training of young people in the skills of the future, Ramaphosa said.

South Africa has also reaffirmed its commitment to multilateralism, the rule of law and the central role of the United Nations in maintaining global peace and security.

We also expressed our resolve to resist actions that undermine multilateral cooperation. We reinforced our belief that the institutions of global governance must be reformed to make them representative and fit for purpose. We agreed that addressing the root causes of conflict is essential for achieving durable peace, security and stability in Africa.

Ramaphosa said the summit had strengthened the strategic partnership between South Africa and the EU.

We hope we can continue to rely on the support of the European Union and its member states in our efforts to alleviate poverty, transition to a low-carbon economy, invest in climate-resilient infrastructure, and grow our industrial capacity, Ramaphosa said. SAnews.gov.za