South African President Cyril Ramaphosa, flanked by European Council President António Costa (left) and European Commission President Ursula von der Leyen, addresses the media after the Summit in Cape Town. It’s the first bilateral summit between the bloc and South Africa in seven years/Photo: The Presidency of the Republic of South Africa/Facebook

South Africa-EU Summit strengthens economic ties amid US hostility

On 13 March 2025, Cape Town hosted the 8th South Africa–European Union (EU) Summit to reinforce the longstanding collaboration between the two partners amid hostile policies of the new US administration. President Donald Trump recently cancelled all aid to South Africa ostensibly for expropriating land from its white citizens without compensation.

The one-day meeting, which focused on cooperation in the areas of trade and investment, development cooperation, climate change and human rights, also comes at a time that EU-US relations are under strain due to Trump’s confrontational policies on trade.

The first bilateral summit between the bloc and South Africa in seven years brought together South African President Cyril Ramaphosa, European Council President António Costa, and European Commission President Ursula von der Leyen.

A key outcome of the summit was the European Union’s pledge of a €4.7 billion (approximately $5.1 billion) investment package aimed at supporting South Africa’s economic development and sustainability efforts. This initiative, aligned with the EU’s Global Gateway strategy, will focus on:

– Energy Transition: The funding aims to support a shift towards renewable energy, with investments in solar, wind and hydrogen projects to promote a low-carbon economy in view of South Africa’s reliance on coal.
– Healthcare and Vaccine Production: To strengthen local health infrastructure, a portion of the funds will be allocated to expanding vaccine manufacturing capacity, positioning South Africa as a hub for pharmaceutical production in Africa.
– Infrastructure and Digital Transformation: Investment in modernizing transport networks and advancing digital connectivity is expected to enhance economic growth and global market integration.

President Ramaphosa welcomed these initiatives, emphasizing their role in fostering industrial development, job creation and innovation. He noted that these commitments would help South Africa address pressing socio-economic challenges while maintaining global competitiveness.

Another focal point of the discussions was the importance of investing in education, science and technological innovation. Both parties agreed on the necessity of equipping young people with skills that align with emerging economic trends, ensuring that South Africa remains competitive in a rapidly evolving global landscape.

The summit also highlighted the importance of international cooperation in addressing global challenges. Discussions centred on strengthening democratic institutions, promoting human rights and ensuring fair representation in global governance structures. South Africa and the EU reaffirmed their commitment to working together in international forums to advance these shared values.

The ongoing conflict in the eastern Democratic Republic of the Congo (DRC) was a major concern at the summit. President Ramaphosa called for coordinated international action to address the humanitarian crisis, urging global and regional organizations to increase support for displaced communities and support efforts to achieve lasting peace in the region.

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