South Africa and the European Union look to the future

Dear Fellow South African, 

On Thursday last week, we had the privilege of hosting European Commission President Ursula von der Leyen and European Council President António Costa at the 8th Summit of South Africa and the European Union in Cape Town. 

As a bloc, the European Union (EU) is one of South Africa’s largest trading partners and the source of much investment in our country. Our economic ties with European countries go back to colonial times. Since the advent of democracy 30 years ago, we have steadily been growing the volume and value of trade.

This summit will be remembered as a watershed moment in the development of our trade and investment relations. While expanding our traditional areas of cooperation, we are now focused on working together to develop the industries of the future.

We agreed to work towards a Clean Trade and Investment Partnership. This partnership will support the development of value chains that are more environmentally sustainable. It will make South Africa and the EU more competitive in a low-carbon global economy by improving conditions for investment in the extraction and local beneficiation of rare minerals, renewable energy, low carbon hydrogen and clean technology.

This partnership will improve cooperation between South Africa and the EU on some of the regulatory issues that constrain greater levels of trade. This work should enable South African companies to export products like sustainable fuel and electric and hybrid vehicles to the EU.

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. This package will include grants and loans from European financial institutions and businesses.

Among other things, this investment will be used to build South Africa’s vaccine production capacity and boost local pharmaceutical value chains. The package will also support South Africa’s just energy transition through the development of critical raw minerals and low carbon hydrogen. In addition to investments in transport and digital infrastructure, the package will provide resources for skills development.

We will work with our EU partners to develop the industries that process our natural resources into finished goods for export. This creates more jobs here in South Africa and ensures that our country derives a greater benefit from our natural resources. 

We agreed on further cooperation in the areas of education, science, technology and innovation, specifically providing opportunities for young people to acquire skills through greater investment in education and science.

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. We agreed that a collective effort was needed by all countries to overcome global challenges such as climate change, pandemics, rising inequality and conflict.

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. In its composition and actions, the Security Council needs to better reflect the realities of today’s world. We also agreed to strengthen efforts to safeguard and advance human rights across the world.

As a G20 member, the EU expressed its support for South Africa's G20 Presidency and its emphasis on solidarity, equality and sustainable development. It welcomed South Africa’s focus on forging partnerships between G20 members and other African countries.

The summit confirmed the great alignment between South Africa and the EU on matters of global and continental significance. We share a vision of a just, peaceful and more equal world order in which all countries are able to develop and thrive.

Above all, we are committed to the mutual well-being and development of the peoples of South Africa and all the member states of the European Union. We have a shared vision of the future and we are determined to work together to achieve it.

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