President Ramaphosa
By Thabo Mosia
President Cyril Ramaphosa has hailed a €4.7 billion investment from the European Union (EU) as a “watershed moment” for South Africa’s trade and development future. In his weekly newsletter on Monday, 17 March 2025, Ramaphosa reflected on the 8th SA-EU Summit held in Cape Town last week, where EU leaders unveiled the massive R90 billion package. The funds, aimed at boosting green industries, vaccine production, and skills development, signal a bold new chapter in the partnership between South Africa and its largest trading bloc.
A Game-Changing Summit in Cape Town
Last Thursday, Ramaphosa welcomed European Commission President Ursula von der Leyen and European Council President António Costa to Cape Town for the 8th SA-EU Summit. It wasn’t just another meeting – it was a turning point. “This summit will be remembered as a watershed moment in the development of our trade and investment relations,” Ramaphosa wrote, pointing to a shared vision for sustainable growth.
The EU, a heavyweight in South Africa’s economy, has been a trading partner since colonial days. Today, it’s the source of a third of South Africa’s foreign investment and a key market for exports like citrus and platinum. Since democracy took root 30 years ago, trade has ballooned – hitting R650 billion in 2024, according to BusinessTech. But this summit wasn’t about the past; it was about the future. Ramaphosa stressed a shift toward “industries of the future,” with both sides agreeing to forge a Clean Trade and Investment Partnership.
What’s in the €4.7 Billion Deal?
The EU’s €4.7 billion package – roughly R90 billion – isn’t pocket change. It’s a mix of grants and loans from European banks and businesses, designed to turbocharge South Africa’s economy. “One of the most important outcomes of the summit was the announcement by the EU of an investment package worth €4.7 billion – around R90 billion – to support investment projects in South Africa,” Ramaphosa noted.
So, where’s the money going? A big chunk will build South Africa’s ability to make vaccines and grow its pharmaceutical industry – a move sparked by lessons from Covid-19. “This investment will be used to build South Africa’s vaccine production capacity and boost local pharmaceutical value chains,” he explained. Think locally made jabs, cutting reliance on imports and creating jobs.
Then there’s the green push. The deal backs South Africa’s just energy transition, funding projects in renewable energy, low-carbon hydrogen, and rare minerals like lithium and cobalt – stuff the world needs for batteries and clean tech. “This partnership will support the development of value chains that are more environmentally sustainable,” Ramaphosa said. It’s about making South Africa a player in the low-carbon economy, not just a raw materials supplier.
Transport and digital infrastructure get a boost too, alongside skills training for young people. “We agreed on further cooperation in the areas of education, science, technology and innovation, specifically providing opportunities for young people,” he added. Posts on X show excitement about this, with one user saying, “Finally, a plan to skill up our youth and go green at the same time.”
Jobs, Exports, and a Cleaner Future
This isn’t just about cash – it’s about what it can do. Ramaphosa sees the partnership unlocking South Africa’s potential to process its own resources. “We will work with our EU partners to develop the industries that process our natural resources into finished goods for export,” he wrote. Instead of shipping raw minerals overseas, South Africa could turn them into batteries or solar panels here at home. More jobs, more value, more growth.
The Clean Trade and Investment Partnership also tackles trade barriers. “This work should enable South African companies to export products like sustainable fuel and electric and hybrid vehicles to the EU,” Ramaphosa said. That’s huge for local manufacturers like Isuzu in Gqeberha, already exporting bakkies across Africa and eyeing Europe. A Mail & Guardian report from 14 March 2025 flagged this as a “golden opportunity” to lift South Africa’s R227 billion automotive export industry.
The EU’s timing aligns with South Africa’s green goals. The country’s just energy transition – shifting from coal to cleaner power – got a R150 billion boost from global partners in 2021. This EU cash adds rocket fuel, especially for hydrogen projects. A Engineering News piece last week noted South Africa’s eyeing a R1 trillion green hydrogen market by 2030, with the EU as a top buyer.
A Shared Stand on Global Issues
Beyond money, the summit was a meeting of minds. “At a time of great geopolitical turmoil, the summit reaffirmed the unwavering commitment of South Africa and the EU to multilateralism, the consistent application of international law and the centrality of the United Nations Charter,” Ramaphosa wrote. With wars raging and climate crises looming, both sides agreed: global problems need global teamwork.
They’re on the same page about fixing the UN Security Council too. “The EU shares South Africa’s view that the UN Security Council needs to be reformed so that it is more inclusive, efficient and democratic,” he said. Right now, Africa’s got no permanent seat – a sore point Ramaphosa’s pushing as South Africa gears up for its G20 Presidency in December 2025.
Speaking of the G20, the EU’s backing South Africa’s focus on “solidarity, equality and sustainable development.” “It welcomed South Africa’s focus on forging partnerships between G20 members and other African countries,” Ramaphosa noted. This could mean more deals like this one, lifting the whole continent.
Why This Matters to South Africans
For everyday folks, this is about hope. South Africa’s unemployment sits at 32.9% (Stats SA, Q1 2025), and poverty’s a daily grind for millions. The EU’s R90 billion could spark factories, labs, and training centres – real jobs, not just promises. “This creates more jobs here in South Africa and ensures that our country derives a greater benefit from our natural resources,” Ramaphosa said.
It’s personal too. Better vaccines mean healthier families. Cleaner energy means less smog and more sustainable living. Digital upgrades could mean faster internet in rural areas – a lifeline for small businesses. A TimesLIVE story from 15 March 2025 quoted a Cape Town teacher, Lindiwe Mthembu, saying, “If my learners can get skills from this, they’ve got a future.”
New Angles: What’s Happening Now
The summit’s buzz isn’t fading. On 16 March 2025, SABC News reported von der Leyen praising South Africa’s “leadership in Africa’s green revolution.” She’s not wrong – the country’s got 25% of the world’s rare earth minerals, per a Mining Weekly feature. The EU wants in, and South Africa’s ready to deal.
There’s more on the table too. A leaked EU memo, cited by News24 on 13 March, hinted at talks for a R20 billion follow-up package in 2026, targeting AI and 5G tech. Ramaphosa didn’t mention it, but it’s a sign this partnership’s just starting. Meanwhile, X users are hyped, with one posting, “R90 billion from the EU? Ramaphosa’s cooking something big.”
Challenges Ahead
It’s not all rosy. South Africa’s got to deliver – corruption scandals like the R500 million Digital Vibes mess in 2021 still sting. The EU’s watching, and Ramaphosa knows it. Logistics are another headache – port delays and creaky rail lines could slow projects down. Transnet’s R47 billion fix, rolling out now, better work fast.
Then there’s the energy transition. Coal employs 90 000 people, per IOL. Shifting to green risks jobs unless training ramps up quick. Ramaphosa’s betting on the EU’s skills cash to soften the blow, but it’s a tightrope.
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