EU promises to invest 11.5 billion euros in South Africa
The European Union said late Thursday that it would put 11.5 billion euros ($13.3 billion) into clean energy, infrastructure, and drug projects in South Africa.
A lot of the money will be used to speed up South Africa’s move to renewable energy by adding new power plants, improving the grid, storing energy, and making green hydrogen.
The largest economy in Africa is looking to get investors to help it get its growth back on track and lower its high unemployment rate. However, U.S. tariffs have hurt it as well.
The EU’s statement talked about the Coega Green Ammonia Project. This project aims to meet the growing need for green ammonia in mining, chemicals, and agriculture while also making it easier for South Africa to make more vaccines and other medicines for the whole continent of Africa.
Ursula von der Leyen, President of the European Commission, promised 4.7 billion euros in investments while she was in South Africa in March. It wasn’t clear right away if the new investment promise was in addition to or included that money.
The 30% tariff that U.S. President Donald Trump put on South Africa’s goods in August and the end of a major U.S. trade effort with Africa at the end of last month both hurt the country’s export prospects.
The government of South Africa is trying to get the Trump administration to lower the 30% tax.
