The European Union has pledged 11.5 billion euros to boost South Africa’s clean energy, infrastructure, and pharmaceutical sectors.
A significant portion of the investment targets renewable energy, including new power generation, grid upgrades, energy storage, and green hydrogen projects.
South Africa, Africa’s largest economy, is seeking foreign investment to revive slow growth and tackle persistently high unemployment rates.
The EU highlighted the Coega Green Ammonia Project, aiming to meet rising demand in agriculture, chemicals, and mining industries across Africa.
Investment will also support vaccine and pharmaceutical production in South Africa, reinforcing healthcare supply chains for the broader continent.
European Commission President Ursula von der Leyen previously pledged 4.7 billion euros in March, though it remains unclear if this forms part of the new investment.
South Africa faces economic pressures, including a 30% U.S. tariff imposed in August, which has dampened exports to its largest trading partner.
The expiry of a major U.S. trade initiative with Africa last month added further strain on the country’s export prospects.
South African officials are actively negotiating with Washington to reduce the tariff and protect the nation’s fragile economic recovery.
EU investment could signal a turning point, offering a lifeline to energy transformation and pharmaceutical growth amid global economic uncertainty.