The European Union’s €11.5 billion (R230 billion) investment package into South Africa is a springboard that will support the country on its march towards inclusive and sustainable growth.
This according to President Cyril Ramaphosa, who addressed the nation through the weekly newsletter.
The package was announced last week by the EU at the Global Gateway Forum at held in Brussels, Belgium.
Create jobs
“This innovative partnership focuses on priorities that South Africa has set for itself as it strives to improve the lives of its people. These priorities include investment, the clean energy transition, skills and technology, connectivity and developing strategic industries. Importantly, the partnership will contribute to the work being done to create jobs.
“The investment package covers areas such as critical minerals, e-battery development, green hydrogen, renewable energy and vaccines. This will lead to the creation of a number of jobs, skills development and transfer of technology.
“As we said in Brussels, these investments will support our effort to build the economy of the future in the South Africa of the present. They will help to accelerate South Africa’s ambitious transition to a low-carbon economy that is just and inclusive,” President Ramaphosa said.
Boosting energy efficiency
He explained that the package is aimed at mobilising finance to “invest in local processing and refining of minerals that are critical to the energy transition”, including investments in green hydrogen and the acceleration of large-scale solar and wind power projects, while boosting energy efficiency.
“As a country, we have always insisted that our energy transition must be just and inclusive, and that we must take deliberate measures to protect workers, communities and businesses that would be affected.
“That is why part of the investment package is dedicated to re-skill, train and provide entrepreneurship opportunities. It will also be used to expand access to clean water, waste management and energy efficient public services,” the President said.
Furthermore, the package will also support developing South Africa’s rail, road and ports infrastructure, logistics and digital connectivity.
‘Immense progress’
“These investments will also support the local manufacturing of pharmaceuticals through partnerships with regulatory authorities, as well as innovative research projects, training and capacity building on biotechnology and pharmaceutical infrastructure.
“As a country, we have made immense progress in overcoming our energy supply constraints through the improved performance by Eskom and a massive investment in renewable energy generation. We are improving efficiencies at our ports and opening our freight rail lines to private operators. We are undertaking a massive investment in infrastructure and streamlining regulations to improve the environment for investors.
“The progress we are making with our reforms is recognised and it’s making our country an investment destination. We are seen as the gateway into the African continent,” the President said.
He noted that the investment takes place at a time of a “more volatile global environment”.
“There is a significant realignment of trade and investment between countries. In addition, rapid advances in technology and the escalating climate crisis are contributing to greater uncertainty.
“That is why South Africa is forging ahead with the work of building a resilient and sustainable economy that address the needs of the present while positioning itself for the needs and challenges of the future,” President Ramaphosa concluded.
