Johannesburg/Brussels – South African President Cyril Ramaphosa has enthusiastically welcomed an investment package from the European Union (EU) worth nearly €12 billion, which is set to significantly accelerate South Africa’s transition to a low-carbon economy and bolster essential infrastructure. This monumental commitment, unveiled at the Global Gateway Forum on 9 October 2025, marks a “new chapter” in the EU-South Africa partnership and is mobilized through the Team Europe approach under the EU’s Global Gateway strategy.

President Ramaphosa, speaking during a media briefing on his working visit to the EU in Brussels, expressed delight over the announcement of this further investment package, which raises the total investment value to €11.5 billion. He asserted that these substantial investments will help build the economy of the future in the South Africa of the present.

Doubling Down on Green Transition

The newly announced funding package significantly increases the commitment made earlier in the year, building on the €4.7 billion package announced at the EU-South Africa Summit in March 2025.

The funding is primarily focused on four strategic areas, targeting inclusive prosperity, resilience, and job creation:

1. Advancing the Just Energy Transition (JET): The largest share, €8.7 billion, is earmarked for energy and industrial transformation. This component will drive investments in strategic projects supporting the Just Energy Transition (JET), which aims to replace ageing, coal-fired power stations with cheaper, green alternatives.

Key focus areas within the JET pillar include:

• Supporting the Just Energy Transition by expanding solar, wind and energy efficiency projects to diversify South Africa’s energy mix and enhance energy security.

• Driving investments in green hydrogen and establishing an investment facility for local critical raw material (CRM) processing projects. The EU previously pledged $35 million in grants in September 2024 to boost South Africa’s green hydrogen initiatives.

2. Connectivity, Logistics, and Infrastructure: €1.3 billion is allocated for investment in modern, sustainable infrastructure. This funding will support road, rail, and port infrastructure, including green logistics, efficient transport networks, and digital connectivity.

3. Building Vaccine and Pharmaceutical Production: A total of €292 million is dedicated to bolstering local manufacturing of vaccines (MAV+) and other pharmaceuticals in South Africa for the African continent. This includes reinforcing the regulatory ecosystem and investing in innovative biotechnology research.

Ensuring an Inclusive Future

Crucially, €1.2 billion of the package is allocated to ensuring the transition is fair and inclusive so that no one is left behind. This funding will support:

• Re-skilling and new employment opportunities linked to the JET.

• Greening municipal service delivery to enhance climate-and environment-focused municipal services.

• Research, innovation, and climate adaptation projects, including water security and climate-smart agriculture.

President Ramaphosa also welcomed the special focus on skills, small business development, and research and development, calling these aspects “vital for the development of South Africa’s people, our most valuable resource”.

Projects Already Delivering Results

This significant Team Europe package is already showing concrete outcomes. New commitments include strengthening local biomanufacturing capabilities to produce vaccines and other pharmaceuticals. Furthermore, the investment supports the Coega Green Ammonia Project, which aims to meet growing global and domestic demand in the agriculture, chemical, and mining sectors, supporting South Africa’s ambition to become a global shipping hub using green ammonia as a clean maritime fuel.

The commitment underscores the deep strategic relationship between the EU and South Africa. The EU remains one of the most important foreign investors in South Africa, with EU member states accounting for 41 per cent of total Foreign Direct Investment. Over 2,000 EU companies operate within the country, generating more than half a million direct and indirect jobs.

President Ramaphosa also acknowledged the EU’s “strong support” for South Africa’s ongoing G20 Presidency, which prioritises an agenda of solidarity, equality, and sustainability. South Africa’s G20 Presidency provides a strategic platform for the Africa-Europe Partnership to enhance cooperation and drive the global agenda